Constraints on the global coal supply caused by the war in Ukraine have underpinned a record financial result for Gunnedah Basin miner Whitehaven Coal (WHC).
The company has posted a full-year result for the 2021–22 financial year of $3.06 billion in earnings before tax, and a net profit after tax of $2 billion.
The main driver was a record coal price for the year of $325 per tonne, more than triple the figure for FY21.
WHC's primary markets are in the Asian region, but chief executive Paul Flynn said the Ukrainian war had introduced new customers.
"We are seeing emerging interest in Europe, obviously given the energy security concerns that are playing out there," Mr Flynn said.
The result has meant the company has paid off all of its net debt, and now has more than $1 billion in cash.
WHC shareholders will receive a fully franked dividend of 40 cents per share.
Future coal demand
The company has argued that forecasts from global energy consultants Wood Mackenzie, which show that global coal demand will remain "largely flat to 2030", confirm the strength of the market.
Wood Mackenzie has also estimated that Australian compliance with a 1.5 degree Celsius limit to global warming would require "an immediate, sharp decline in thermal coal consumption".
Mr Flynn said he is confident the future demand for WHC's products will remain strong.
"Governments around the world have stimulated investment in intermittent energy, not reliable energy," he said.
"I think we're playing a very important and critical role in the energy supply mix."
While two WHC mines are forecast to close in the next decade, the company has applied to extend the life of its Narrabri Underground mine to 2044.
The project is awaiting approval from federal Environment Minister Tanya Plibersek, who has recently signalled a willingness to reject new coal projects.
Mr Flynn said that since the new government came to power he has not seen "any particular changes that cause [the company] any great concern".
"They seem to understand the role of coal generally," he said.
WHC has also proposed a new mine at Winchester South, near Moranbah in Queensland's Isaac region, which remains in the state planning process.
