This ASX 200 coal stock is charging higher after a big profit jump

New Hope Corporation Ltd (ASX: NHC) shares are climbing on Monday after the coal producer gave investors a stronger quarterly update.

At the time of writing, the New Hope share price is up 2.10% to $5.34.

The move adds to a strong run for shareholders. New Hope shares are now up 32% in 2026 and 35% over the past year.

Here’s what was in the announcement.

Production and sales improve

In its quarterly activities report, New Hope said group run-of-mine coal production reached 4.3 million tonnes for the April quarter.

This was 5% higher than the previous quarter, giving the company a stronger production base heading into the period.

Group coal sales also improved, rising 10.4% to 3.2 million tonnes, while the average realised sales price increased 1.2% to $140.7 a tonne.

Higher sales volumes and a slightly better coal price helped lift underlying EBITDA 21.7% to $130.1 million.

Costs move the right way

New Hope said its key operating asset, Bengalla Mine, achieved run-of-mine coal production of 2.6 million tonnes during the quarter. Saleable coal production rose 13.5% to 2.1 million tonnes, while coal sales increased 14.1% to 2.2 million tonnes.

Bengalla’s FOB cash cost fell 12.4% to $74 a tonne, giving the business more protection against coal price swings.

The company said the lower cost reflected reduced trade coal sales and lower state royalties. It also leaves Bengalla tracking better than its FY26 FOB cash cost guidance range of $81 to $89 a tonne.

Coal prices help New Hope result

The quarterly result also had some help from the coal market, with thermal coal prices improving during the period.

New Hope said the gC NEWC 6000 index price averaged US$127.6 a tonne across the quarter, up 16.5% on the previous quarter. The API-5 index also moved higher, averaging US$86.5 a tonne over the same period.

The company said geopolitical tension in the Middle East supported some gas to coal switching in power generation. Colder weather in North Asia also helped demand, while Japan and South Korea continued to focus on energy security.

These conditions helped coal prices recover during the quarter, even with longer-term pressure still hanging over the sector.

Management also said its forward sales book remains well supported, with most production already sold for the next 3 months.

Strong balance sheet

New Hope also finished the quarter with a strong cash position, holding cash and cash equivalents of $571.6 million.

The company completed a $300 million senior unsecured convertible notes issue due in 2032. It used the proceeds to repurchase 97.7% of its existing senior unsecured convertible notes due in 2029.

By refinancing the notes, New Hope has pushed a large debt maturity out to 2032 and given itself more financial flexibility.

Shareholders also received a return during the quarter, with the company paying an interim dividend of 10 cents per share.

The post This ASX 200 coal stock is charging higher after a big profit jump appeared first on The Motley Fool Australia.

More reading

• Why is everyone talking about Elders, Brambles and New Hope shares on Monday?
• New Hope Corporation posts stronger coal output and profit in third quarter
• 5 things to watch on the ASX 200 on Monday
• Here are the top 10 ASX 200 shares today
• 2 amazing ASX shares I’d buy amid rising interest rates

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.