Whitehaven Coal chief executive officer Paul Flynn has highlighted the ramifications now being felt from global under-investment in baseload energy sources as the company reports a record net profit after tax of $2 billion.

The company’s EBITDA of $3.1 billion for the year ended June 30 was a significant increase on the $204.5 million of EBITDA in the previous year.

Record revenue of $4.9 billion was underpinned by an achieved average coal price of $325/t compared to $1.56 billion revenue and $95/t average price in the previous financial year.

“The longer-term under-investment in energy sources needed to supply baseload capacity to growing populations and economies has contributed to a widening gap between supply and demand,” Mr Flynn said.

“In FY22, we saw global energy shortages intensify as a result of the tragic conflict in Ukraine and associated sanctions against Russian coal and gas.

“Coal prices are at record levels and customers are focused on energy security now more than ever before.

“We have worked hard to position ourselves to maximise the opportunity arising from historically high prices.”

Whitehaven Coal operate four mines in the Gunnedah Coal Basin of New South Wales and is advancing plans for its $1 billion Winchester South open-cut coal project in Queensland’s Bowen Basin.

Commenting on FY23 market outlook and guidance, Mr Flynn said demand for high-quality seaborne thermal coal was expected to remain strong throughout this year.

“We expect to deliver higher ROM production and coal sales in FY23 compared with FY22, and we are focused
on maximising margins including managing inflationary cost pressures,” he said.

“We will also continue to progress and refine plans for our Vickery and Winchester South development projects
in FY23 to position the company to bring on additional capacity if the board determines appropriate returns can
be delivered.”

The company released an update in April to the resources and reserves statement for Winchester South, with the JORC reserves upgraded to 380Mt (from 350Mt) and JORC proved reserves upgraded to 270Mt (from 140Mt).

The project has JORC resources of 1,100Mt, inclusive of 670Mt of measured and indicated resources.