Tuesday, February 23, 2010

Profits Fall 59 Per Cent At Gloucester Coal

Gloucester Coal Ltd has posted a 59 per cent fall in net profit for the first half of 2009/10. Net profit for the first half was $18.099 million, down from $44 million in the first half of 2008/09, on revenue of $103.661 million, down 24 per cent on the corresponding period last year. Earnings before interest, tax, depreciation and amortisation (EBITDA) were $25.5 million, down from $46 million.

The company sold 914,000 tonnes of coal in the first-half of 2009/10, a slight drop compared to the 921,000 tonnes in the prior corresponding period.

"We are pleased to have achieved this strong financial result despite the volatile economic conditions," Gloucester Coal chief executive officer Barry Tudor said in a statement. "Although the sales price of our semi-hard coking coal fell by over 60 per cent from last year, the company was able to maintain healthy volumes and solid margins."

Mr Tudor said that demand was still strong and in line with the company’s expectations and that prices were recovering: "Spot hard coking coal sales have been reported at prices substantially higher than those seen in the previous financial year and the company recently entered into a contract to supply coal at US$164 per tonne."

The company will not be paying a dividend.

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