Shares of Yancoal Australia Ltd (YAL.AU) plummeted 6.27% in Wednesday's trading session, following the release of the company's disappointing first-half financial results. The significant drop reflects investors' concerns about the coal miner's weakening performance in a challenging market environment.
Yancoal reported a sharp 61% decline in attributable profit for the first half of 2025, falling to AU$163 million from the previous year. The company's revenue also took a hit, sliding 15% to AU$2.68 billion. Earnings per share (EPS) dropped to AU$0.1240, a substantial decrease from AU$0.318 in the same period last year, highlighting the pressure on the company's profitability.
Despite the weak results, Yancoal's management remains optimistic about its full-year outlook. The company stated it is well-positioned to target full-year saleable production at the upper end of its guidance range of 35 million to 39 million tonnes. Additionally, Yancoal declared an interim dividend of AU$0.0620 per share, payable on September 19 to shareholders of record as of September 5. However, this reassurance seems to have done little to allay investor concerns, as evidenced by the sharp stock price decline.