Yancoal Australia's 2025 Earnings Impacted by Decline in Coal Prices

Wedoany.com Report on Feb 26th, Yancoal Australia, listed on the Australian Securities Exchange, reported that despite an increase in coal production in 2025, its earnings saw a significant decline due to falling international coal prices.

As of December 31, 2025, the company's raw coal production reached 67 million tonnes, a year-on-year increase of 7%, setting a new historical high. Saleable production increased to 50.8 million tonnes, up 6%, of which the company's attributable saleable production was 38.6 million tonnes, a 5% increase, at the high end of the expected range.

Despite the increase in production, revenue decreased by 14% year-on-year to AUD 5.95 billion, primarily due to a 17% average decline in realized coal prices, to AUD 146 per tonne. Thermal coal prices fell by 15% to AUD 136 per tonne, and metallurgical coal prices fell by 26% to AUD 203 per tonne.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) fell by 44% to AUD 1.44 billion, with the margin compressed from 37% in 2024 to 24%. Profit after tax decreased by 64% to AUD 440 million.

Cash operating costs (excluding government royalties) decreased slightly by 1% to AUD 92 per tonne, below the midpoint of guidance, benefiting from production growth and efficiency improvements, partially offset by increased demurrage costs during the year.

After returning AUD 769 million in dividends to shareholders in 2025, the year-end cash balance was AUD 2.1 billion, lower than the AUD 2.46 billion at the beginning of the year.

The Board declared a final dividend of AUD 161 million, AUD 0.122 per share, resulting in a full-year payout ratio of 55%, in line with the company's policy.

Commenting on the performance, CEO Sharif Burra said, "The company achieved record coal production in 2025, near the top of the guidance range, driven by the highest first-half production in five years and a record fourth quarter."

The company plans to carry its operational momentum into 2026, with attributable saleable production guidance set at 36.5 million to 40.5 million tonnes. Cash operating cost guidance is AUD 90 to AUD 98 per tonne, and capital expenditure is expected to be AUD 750 million to AUD 900 million, considering cost inflation.

Despite ample supply in the international coal market, Sharif Burra noted recent improvements in coal price indices. The company stated it will continue to work with customers to optimize its product mix to adapt to market conditions.