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Stock of the day: New Hope
Amid declining coal prices, New Hope Corporation reports an 84% drop in profit, reflecting challenges in the volatile energy market dynamics the company faces.
(AI video summary)
This video was created on 17 March 2026 for IG audiences by ausbiz.
ASX code: NHC
Drop in net profit amid weaker coal prices
New Hope Corporation reported an 84% decline in net profit after tax for the first half of the financial year, affected by weaker coal prices. Net profit fell to $54.3 million for the six months ending 31 December, with underlying earnings dropping nearly 60% to $215 million. Shareholders will receive a fully franked interim dividend of $0.10 per share, down from $0.15. Shares initially fell 10% at market open but recovered to a 5% decline.
Coal’s role in the energy mix
Despite the global shift to renewables, coal remains essential in energy production. In Australia, New Hope retains a key position, despite local efforts to cut coal dependence. The company trades at a low price-to-earnings (PE) ratio, but uncertain coal prices challenge earnings.
Investment outlook
The slow decline of coal in energy strategies, especially in China and India, keeps demand steady. Geopolitical factors may drive speculation. While New Hope faces challenges, a rebound is possible with increased coal demand.
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