Why Whitehaven Coal shares are rising today despite a rough month

A fresh quarterly update has given Whitehaven Coal Ltd (ASX: WHC) shares a boost during early Tuesday morning.

At the time of writing, the coal producer’s share price is up 3.77% to $7.99. That follows a weaker stretch, with the stock down around 15% over the past month.

Here’s what came through in the update.

Output falls after wet weather in key state

According to the release, Whitehaven reported managed ROM coal production of 9.5 million tonnes for the March quarter. That was down 14% on the December quarter, mainly due to wet weather in Queensland.

The drop was most visible, with Queensland production falling 28% quarter-on-quarter to 4.1 million tonnes.

New South Wales operations were steadier. Production came in at 5.4 million tonnes, broadly in line with the prior quarter.

Even with the softer production result, sales held up better. Equity sales reached 6.8 million tonnes for the quarter, which was consistent with December.

Stronger coal prices help offset lower volumes

One of the more supportive parts of the quarterly update came from pricing.

Whitehaven reported stronger realised prices across both metallurgical and thermal coal during the quarter.

In Queensland, average realised prices lifted, supported by stronger metallurgical coal benchmarks.

In New South Wales, pricing also improved, with realised thermal coal prices tracking above the NEWC index.

The company noted that tightening supply, partly linked to wet weather disruptions, helped support prices through the period.

Evidently, that helped offset some of the impact from lower production volumes.

Debt edges lower as buybacks continue

Whitehaven ended the quarter with net debt of around $600 million, down from $700 million at the end of December.

The company also completed a refinancing during April, which is expected to lower interest costs going forward.

Share buybacks continued throughout the quarter, with around $51 million of shares repurchased.

That brings total buybacks for the financial year to roughly $56 million.

Currently, Whitehaven has 824.73 million shares on issue.

Full-year outlook unchanged

Management left full-year guidance unchanged.

Managed ROM production is still expected to land between 37 million and 41 million tonnes for FY26.

Unit costs and capital expenditure are also tracking within previously guided ranges.

Looking ahead, development work continues across key projects including Vickery and Winchester South.

While these are longer-term projects, they are expected to support future production as development progresses.

What the market is focusing on next

This quarter was a bit messy, mainly due to weather, but pricing did a lot of the heavy lifting for Whitehaven.

The next step is seeing whether production can bounce back as conditions improve.

If volumes pick up and prices hold, that is where things start to look more interesting again.

The post Why Whitehaven Coal shares are rising today despite a rough month appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.