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Shares in New Hope Corporation Limited (ASX:NHC) lifted yesterday as the coal miner outlined a positive fiscal 2013 outlook, despite posting a profit drop in fiscal 2012.
New Hope’s annual net profit dropped 67 per cent last year to $167 million, having benefitted from stake sales the year before.
The company’s annual coal production and sales rose 11 per cent with revenue from ordinary activities growing 16 per cent in the 2012 financial year.
Though New Hope has conceded the coal sector is currently challenging it says it is well placed to ride out this phase of the cycle being a comparative low cost producer.
The company has also highlighted its $1.5 billion of cash reserves which will enable it to develop projects when economic conditions improve.
Shares in New Hope Corporation lifted 8.85 per cent yesterday to close at $4.55.
A final fully franked dividend of 5 cents per share has been declared, in addition to a special dividend of 20 cents per share, bringing the full year payout to 31 cents.
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