Whitehaven Coal says it is on track to deliver "a record set of financials" this year as thermal coal prices hover at seven-year highs, thanks to strong demand, particularly from China and India.
Chief executive Paul Flynn said record production at Whitehaven's Maules Creek mine in the fourth quarter, and ongoing strong performance at its Gunnedah mine helped the group hit sales within the guidance range.
Whitehaven said global demand for thermal coal in the first half of 2018 remained strong following a two per cent increase last year.
"The appetite for high quality coal in the Asian region continues to grow, with India and China leading demand," the group said in its fourth-quarter production report on Monday.
Commenting on the market outlook, Whitehaven said Chinese power demand had increased 8.5 per cent in the first five months of 2018, with coal-fired generation up six per cent over the same period.
A colder-than-expected winter, an early summer and strong industrial demand had driven the increase in demand, while constraints on domestic coal production and distribution had lifted demand for imports, Whitehaven said.
Coal demand across the European Union continues to fall, the company said, but reduced supply from South Africa and Australia plus the higher Chinese demand was keeping thermal coal prices high.
"With peak northern hemisphere demand in July and August impacting demand, prices are likely to remain well-supported in the short to medium term," the company said.
The miner produced 5.9 million tonnes of coal in the fourth quarter of 2017-18, and 22.9 million tonnes of coal for the year.
Whitehaven shares were one cent lower at $5.59 at 1233 AEST.
