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Highlights

  • Yancoal Australia Ltd paid a fully-franked dividend of AU 122.71 cents in FY22.
  • In FY22, revenues of the company jumped by 95.19% to AUD 10.55 billion.
  • YAL's cash generated from operating activities jumped by over three-fold to AUD 6.53 billion in FY22.

Dividend is an important source of passive income, and many shares listed on ASX provide attractive dividend yield, much higher than the interest provided by fixed deposits. One such ASX-listed stock is Yancoal Australia Ltd (ASX: YAL), which has a dividend yield of 22.80% at the closing price of AUD 5.460 on 10 May 2023.

For the financial year ended 31 December 2022, YAL paid a total fully-franked dividend of AU 122.71 cents (Interim dividend of 52.71 cents and final dividend of 70 cents).

YAL Financial Performance

In FY22, the company's revenues jumped by 95.19% to AUD 10.55 billion from AUD 5.40 billion in FY21, supported by higher coal prices. Meanwhile, its net profit after tax surged by 353.35% to AUD 3.59 billion as against AUD 791 million in FY21. 

YAL's cash generated from operating activities jumped over threefold to AUD 6.53 billion compared to AUD 1.9 billion year-on-year. Due to the surge in its profit in FY22, the company decided to pre-pay external debts worth USD 333 million. Worth mentioning here is that since October 2021,  YAL has made total debt repayments of around USD 3.1 billion. According to the company, this debt repayment will help it save over AUD 300 million in finance costs in 2023.

However, Yalcoal's business faces multiple risks, including fluctuation in coal prices, inflationary pressure on coal production costs, and depleting coal reserves. The increasing focus of developed nations on decarbonisation and import control policies in end markets may negatively impact international coal prices and can be a big revenue risk for YAL. If coal prices fall this year, the company may not see a repeat of last year's financial performance.

YAL Stock Price Performance

YAL shares closed 1.48% higher at AUD 5.460 on Wednesday, 10 May 2023. The stock has gained 6.22% in the last six months, while in the previous one year, YAL appreciated by 4%. However, on a year-to-date basis, YAL shares are down nearly 10% and are 23.64% away from their 52-week high of AUD 7.150 registered on 9 September 2022. The coal producer's shares hit a 52-week low of AUD 4.610 on 8 August 2022.

YAL Daily Technical Chart, Data Source: REFINITIV

Note 1: Past performance is neither an Indicator nor a guarantee of future performance. 

Note 2: The reference date for all price data, currency, is 10 May 2023. The reference data in this report has been partly sourced from REFINITIV.