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Coal price rally shreds Whitehaven debtPeter KerResources reporterOct 14, 2021 – 9.33amSaveShareWhitehaven Coal expects to be debt free within six months as a global energy crisis drives prices for New South Wales thermal coal to record levels.GlobalCoal’s weekly settlement price for top quality NSW thermal coal was $US244.11 per tonne on October 8, well above the previous record of $US194.79 set in 2008.The record prices have been driven by a global shortage of energy commodities which has forced big consumers like Dutch aluminium smelter Aldel and European nickel refiner Nyrstar to slash production over the past week.The pain for power consumers in Europe, China, Lebanon and India has been a gain for Australian exporters of coal and liquefied natural gas (LNG), with surging prices putting Whitehaven on track for a record annual profit.Whitehaven managing director Paul Flynn said the boom conditions were rapidly erasing the company’s debt.“We expect to fully repay the debt facility in early CY22 [calendar year 2022] and be in a net cash position in the March 2022 quarter,” he said.RELATED QUOTESWHCWhitehaven Coal$3.235 -1.97%1 year1 dayOct 20Apr 21Oct 210.7502.2503.750Updated: Oct 14, 2021 – 12.59pm. Data is 20 mins delayed.View WHC related articles AdvertisementThe notion of Whitehaven being debt free is remarkable given that barely one year ago the company was seeking covenant relief from lenders and losing money at coal prices below $US50 per tonne.Prices for thermal coal and LNG could yet go higher as demand for energy traditionally rises when the world’s major economies go into the northern winter.RELATEDRecord thermal coal price adds to global energy crunchGlobalCoal saw one coal customer pay $US260 per tonne last week for a 25,000 tonne dispatch of NSW thermal coal to be delivered in the December depths of the northern winter.Whitehaven has told investors to expect “managed coal sales” of between 18 million and 18.6 million tonnes in the year to June 2022.The company is on track to achieve that goal after it reported 4.64 million tonnes of managed coal sales in the first three months of the financial year.The price rally has Whitehaven on track to beat its record underlying profit of $564.9 million which was set in fiscal 2019.The average price for top quality NSW coal was $US99 per tonne in that year.That will cut a stark contrast from the year to June 2021, when Whitehaven posted an $87 million loss.