Friday, February 19, 2010

Centennial Coal Hit By Falling Prices

First-half income at Australian coal producer Centennial Coal Co. fell 27 percent after a decline in the export prices the company said today in a statement. Net income dropped to A$31.1 million ($27.7 million) in the six months ended Dec. 31, while underlying profit declined to A$24.2 million, from A$50.7 million a year earlier. The company suffered from a 37 per cent drop in coal prices and an increase in the Australian dollar.

CEO Bob Cameron said that the company has made “substantial progress with the construction of Airly Mine and the Mandalong Haul Road, both of which will assist the group to achieve higher export sales at a time of strong demand and higher prices.” He added “Shareholders can look forward to an increased profit in the second-half.”

Centennial closed up 0.8 percent to A$3.82 in Sydney trading.

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