Yancoal Australia FY2025 Financial and Production Results – Detailed Investor Update
Yancoal Australia FY2025 Financial and Production Results – Comprehensive Investor Update
Key Highlights
- Record Coal Production: Yancoal achieved record ROM (Run-of-Mine) coal production of 67.0 million tonnes (100% basis), up 7% from 2024, and saleable production of 50.8 million tonnes, up 6%.
- Attributable Saleable Coal Production: Attributable saleable coal production reached 38.6 million tonnes, a 5% increase and within the top quartile of guidance.
- Revenue and Price Pressure: Revenue came in at \$5.95 billion, down 13% year-on-year, driven by a 17% decrease in realised average coal price to \$146 per tonne.
- Resilient Earnings: Operating EBITDA was \$1,437 million with a 24% EBITDA margin, demonstrating operational resilience despite lower coal prices.
- Cost Control: Cash operating costs (excluding government royalties) were \$92 per tonne, down \$1/tonne from 2024 and below the midpoint of guidance, supported by higher volumes and productivity gains.
- Strong Cash Position: Yancoal closed 2025 with a robust cash balance of \$2.1 billion, providing substantial future funding capacity.
- Shareholder Returns: The Board declared a fully-franked final dividend of \$161 million (A\$0.122 per share), bringing the total payout to a 55% payout ratio for 2025. In total, A\$769 million was returned to shareholders in 2025.
Details Investors Should Note
- Significant Drop in Profitability: Profit before tax declined 63% to \$623 million, and profit after tax dropped 64% to \$440 million, reflecting the impact of lower coal prices and softer market conditions.
- Sales Mix: Attributable sales of metallurgical coal rose 17% to 6.1 Mt, while thermal coal sales were slightly down by 1% to 32.0 Mt. The shift in mix may impact future revenue sensitivity to market prices.
- Ongoing Cost Pressures: Transportation costs increased by 5% per tonne, though offset by a 13% reduction in contractual services costs. Royalty expenses decreased 12% per tonne.
- Dividend Policy Consistency: The 55% payout ratio is consistent with Yancoal’s dividend policy, providing income certainty for shareholders but also reflecting prudent cash management amid market volatility.
- 2026 Outlook: Guidance for 2026 targets attributable saleable production of 36.5–40.5 Mt, cash operating costs of \$90–98/tonne (allowing for some inflation), and attributable capital expenditure of \$750–900 million (including some deferred spend from 2025).
- Potential for Capital Deployment: The company’s strong cash position and ongoing access to debt markets position it well for growth opportunities and potential shareholder returns in 2026, subject to market conditions.
- Dividend Declaration: The Board has declared a fully-franked 2025 final dividend of A\$0.122 per share – this is price-sensitive and could impact the share price positively due to the significant yield in a low-interest environment.
Operational and Financial Performance – In Depth
Selected Financial and Operational Data
| Metric |
2025 |
2024 |
% Change |
| ROM Coal Production (Mt, 100%) |
67.0 |
62.7 |
+7% |
| Saleable Coal Production (Mt, 100%) |
50.8 |
47.8 |
+6% |
| Saleable Coal Production (Attributable, Mt) |
38.6 |
36.9 |
+5% |
| Revenue (A\$ million) |
5,949 |
6,860 |
-14% |
| Operating EBITDA (A\$ million) |
1,437 |
2,579 |
-44% |
| Profit After Tax (A\$ million) |
440 |
1,216 |
-64% |
| Average Selling Price (A\$/t) |
146 |
176 |
-17% |
| Cash Operating Costs (A\$/t) |
92 |
93 |
-1% |
| Operating EBITDA Margin |
24% |
37% |
n/a |
| Net Cash Inflow from Operations (A\$ million) |
1,257 |
2,133 |
-41% |
| Dividend Paid (A\$ million) |
769 |
429 |
+79% |
| Final Dividend Declared (A\$ million) |
161 |
n/a |
n/a |
| Cash Balance Year-End (A\$ million) |
2,127 |
2,461 |
-14% |
CEO Commentary and Outlook
CEO Sharif Burra emphasized the company’s operational strength and record production, which was achieved despite a challenging pricing environment. The operational momentum from 2025 is expected to carry into 2026, though management anticipates some incremental cost inflation. The company remains focused on cost control and operational performance, with the upper end of 2026 production guidance nearing the operational limits of their mines.
Yancoal’s strong cash balance and dividend track record reinforce its commitment to shareholder returns and financial discipline. The company also highlighted that, subject to suitable market circumstances, it would look to judiciously deploy its cash for growth or further shareholder returns in 2026.
Shareholder Information and Webcast Details
- 2025 Final Dividend: Fully-franked, A\$0.122 per share, payment date and record date to be confirmed.
- Investor Webcast: Scheduled for Thursday, 26 February 2026, at 12:00pm Sydney / 9:00am Hong Kong. Webcast Registration Link
- Contact Details: Investor Relations – Brendan Fitzpatrick ([email protected]); Media Relations – Matthew Gerber ([email protected])
Potential Share Price Implications
- Dividend Yield and Cash Position: With a 55% payout ratio and a substantial cash balance, the declared final dividend and consistent dividend policy may support the share price, especially in a volatile commodity environment.
- Profit Decline and Price Sensitivity: The marked decline in profitability and revenue, while partially offset by cost control and production records, could pressure the share price if investors focus on earnings rather than yield.
- 2026 Guidance: Guidance for potential cost inflation and capital expenditure signals a cautious outlook, but upside exists if coal prices recover or cost inflation is contained.
Disclaimer
This article is for informational purposes only and should not be construed as investment advice. All forward-looking statements are subject to risks and uncertainties. Investors should conduct their own research or consult professional advisers before making investment decisions.
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