Whitehaven Coal Limited (ASX: WHC) Reports Higher Coal Prices as Port Disruptions Delay Sales

Aditi Sarkar

23 October 2026 07:58 PM AEDT

Whitehaven Coal Limited (ASX: WHC) Reports Higher Coal Prices as Port Disruptions Delay Sales

Image Source: Shutterstock

You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to our research reports, in-depth technical and fundamental research. Learn more

Start Your Free Trial Now!

Highlights

Managed ROM production of 11.0Mt, up 3% on the June quarter.
Average achieved price of A$226/t, up 2% on the June quarter.
Unit costs at the low end of the FY27 guidance range of $132-147/t.
Equity sales down 5% to 6.0Mt due to export terminal disruptions.

Whitehaven Coal Limited (ASX:WHC) has released its quarterly production report for the September 2026 quarter (Q1 FY27). The company reported managed run-of-mine (ROM) production of 11.0Mt, up 3% on the June quarter and 22% on the prior corresponding period. CEO and Managing Director Paul Flynn described it as a solid start to FY27, with both its Queensland and New South Wales operations delivering good operating outcomes.

Queensland and New South Wales Operations

Queensland managed ROM production was 5.5Mt, down 4% on the June quarter. Blackwater produced 4.1Mt, in line with the prior quarter, while Daunia produced 1.4Mt as a new box-cut began. Queensland equity sales fell 12% to 2.8Mt due to 12 days of planned and unplanned loading outages at the RG Tanna terminal, which lifted closing stocks to 3.1Mt.

New South Wales managed ROM production rose 10% to 5.5Mt, driven by a notable uplift at Narrabri, which produced 1.9Mt during an uninterrupted period of longwall production. Maules Creek produced 2.7Mt in line with its planned sequence. NSW equity sales rose 2% to 3.2Mt despite terminal disruptions at PWCS, and the Gunnedah Open Cuts received approval to haul up to 4.1Mt per year, up from 3.5Mt.

Pricing and Market Conditions

Whitehaven’s average achieved price was A$226/t, up 2% on the June quarter and 20% on the prior corresponding period. Queensland operations achieved A$257/t, with metallurgical coal realising 74% of the PLV HCC index, while NSW operations achieved A$198/t, with thermal coal realising 103% of the gC NEWC index. Metallurgical coal made up 57% of sales revenue.

The company said metallurgical coal prices were supported by buying from Chinese steel mills and demand from Japan, Europe and Korea, along with supply constraints. Thermal coal prices strengthened towards the end of the quarter amid energy security concerns linked to Middle East conflict and uncertainty over Indonesian exports.

Costs, Balance Sheet and Guidance

Unit costs were at the low end of FY27 guidance of $132-147/t, despite diesel averaging about $1.38 per litre compared with about $1.16 assumed in guidance. Net debt rose by about $0.1 billion to about $1.4 billion, reflecting $61 million in shareholder distributions, an $84 million contingent payment to BMA and higher inventories and receivables, which are expected to unwind in the December quarter.

Whitehaven bought back 1.8 million shares for $14 million during the quarter. The final US$100 million deferred payment to BMA is due in April 2027 and the final contingent payment in July 2027, which will complete payments for the Queensland acquisition. FY27 guidance was unchanged, including managed ROM production of 38.0-41.0Mt.

Key Takeaways

Whitehaven delivered higher production and prices in Q1 FY27, with costs at the low end of guidance despite elevated diesel prices. Port disruptions pushed some sales into the December quarter and lifted net debt temporarily. The unwinding of inventories, coal price trends and completion of BMA payments in 2027 are key items to watch.

Download Free Report – Explore 3 Stock Ideas & Industry Insights

Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.

All investments involve risk—consider independent advice before making any investment decisions.

View 3 Research Reports

Disclaimer:

This article (“Article”) has been prepared by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and its related bodies corporate who are authorised to provide general financial product advice. Kalkine.com.au and its associated pages are published by Kalkine.

Any information/advice provided in this article is general in nature and does not take into account your objectives, financial situation or needs. You should therefore consider whether the information is appropriate for your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Memorandum or other offer document (“Offer Document”) for the securities or other financial products referred to in Kalkine articles. You should obtain a copy of the Offer Document and consider it before making any decision about whether to acquire the security or financial product.

Kalkine strongly recommends that you seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) before acting on any advice/information in this Article or on the Kalkine website. Not all investments are appropriate for all people.

The information in this Article and on Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of the information contained in its articles (including this Article), newsletters and websites. All information represents our views at the date of publication and may change without notice.

The information in this Article does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products.

Kalkine does not issue, sell or deal in any financial products.

This Article may contain information on past performance of particular investments. Please note past performance is neither an indicator nor a guarantee of future performance.

To the extent permitted by law, and excluding any dishonesty or gross negligence by Kalkine, Kalkine disclaims and excludes all liability for any direct, indirect, implied, punitive, special, incidental or other consequential loss or damage arising from the use of or reliance on this Article, the Kalkine website and any information published on the Kalkine website without any warranties or representations by Kalkine to you. To the extent the law prohibits or limits this exclusion, Kalkine limits its liability to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

Employees and/or associates of Kalkine and its related entities may hold interests in the securities or other financial products covered in this Article or on the Kalkine website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

Some of the images/music that may be used in the Article are copyright to their respective owner(s). Kalkine does not claim ownership of any of the pictures displayed/music used in the Article unless stated otherwise. The images/music that may be used in the Article are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.