Stock of the day: Whitehaven Coal
Whitehaven Coal reports a significant profit decline but strengthens its balance sheet with a strategic sale to Nippon Steel, boosting investor confidence.
![Video poster image](https://cf-images.eu-west-1.prod.boltdns.net/v1/static/2830693144001/15c64b18-1406-45f0-8de8-063d398f9aa6/49f4ed2f-328c-4357-99e7-e2122f8a0782/1280x720/match/image.jpg)
[AI generated]
This video was created on 22 August for IG audiences by ausbiz.
Stock of the day: Whitehaven Coal (ASX:WHC)
Tactical sale to Nippon Steel offsets profit loss
Whitehaven Coal has reported an 87% drop in net profit after tax to $355 million, driven by inflationary pressures and reduced output at its Narrabri mine.
Despite this decline, Whitehaven announced a 13-cent dividend and revealed the sale of a 30% stake in its Blackwater mine to Nippon Steel for $1.5 billion. This strategic move boosted Whitehaven’s stock by 5%, reflecting investor confidence in the company’s ability to strengthen its balance sheet and meet its $500 million obligation to BHP.
Market response and future outlook
Analysts suggest Whitehaven's focus on metallurgical coal, along with prudent financial management, positions the company well for future growth. While the coal market may not return to previous highs, the company’s strategic decisions are expected to sustain shareholder value.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
![](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/ContentImage/Shares global component NA banner.jpg/jcr:content/renditions/original-size.webp)
Explore the markets with our free course
Discover the range of markets you can trade CFDs on - and learn how they work - with IG Academy's online course.
Turn knowledge into success
Practice makes perfect. Take what you’ve learned in this shares strategy article, and try it out in your demo account.
Ready to trade shares?
Put the lessons in this article to use in a live account. Upgrading is quick and simple.
- Trade over 13,000 popular global stocks
- Protect your capital with risk management tools
- Deal on 70 key US stocks out-of-hours, so you can react to news
Inspired to trade?
Put the knowledge you’ve gained from this article into practice. Log in to your account now.
Live prices on most popular markets
- Forex
- Shares
- Indices