Whitehaven flags record $3 billion profit as coal prices surge

Flynn said the coal miner had received inquiries from Europe and had committed to trial shipments before the European Union’s ban on Russian coal begins in August, while Asian demand remained strong.

“This is the time when you wish you had a little bit more production than what you’ve got,” Flynn said in an investor call.

Whitehaven had downgraded its production guidance earlier this year as floods in NSW and the Omicron COVID-19 surge hit operations, but the company said its current $1 billion cash position now allowed it to provide fully franked dividends to shareholders.

Flynn also said government infrastructure spending was increasing competition for skilled labour, with Whitehaven still dealing with worker shortages.

“The government is contributing to a lot of the inflationary pressure by their own actions here,” he said.

Flynn also said a legal challenge from environmentalists of the company’s planned expansion of its Narrabri underground coal mine was “annoying”, but he was confident earlier NSW planning approval had accounted for climate change concerns raised by activists.

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Whitehaven’s proposed expansion would extend the mine’s lifespan by 13 years to 2044, with Bushfire Survivors for Climate Action challenging the NSW Independent Planning Commission (IPC) approval of the project.

Flynn also criticised the Queensland government’s increases to coal royalties, which he said was done without consultation.

Mining giant BHP last week criticised the move to end a decade-long royalty freeze on coal, arguing it damaged Australia’s investment reputation.

“They just view this as an opportunity to fill a hole in the budget and I suspect the voting populace of Queensland will have a view on that at some point,” Flynn said.

The Palaszczuk government said the royalty increase would ensure the public received a fairer share of the “super profits” in the sector as coal prices surged following Russia’s invasion of Ukraine.

“It is clearly not a royalty, it’s a tax,” Flynn said.

“We hope there is no change to the position in NSW and we will be making sure the NSW government, leading up to the election in March next year, understands the critical role the resources sector plays for NSW.”

Whitehaven will announce its finalised full-year results on August 25.

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