COAL PRICES DASH NEW HOPE PROFIT

Written on the 5 October 2010

COAL PRICES DASH NEW HOPE PROFIT

NEW Hope Corporation Limited (NHC) has recorded a 29.9 per cent fall in net profit after tax (NPAT) for FY10, despite record coal export sales of 4.9 million tonnes.

Managing director Robert Neale (pictured), says the company has increased productivity but lower coal prices and a high Australian dollar have led to the fall in operating profit to $112.6 million.

“It’s the biggest sales we’ve ever had on the one hand, volumes are up and we’re very pleased getting the coal to market, but prices have fallen from around $122 to around $90,” he told brisbanebusinessnews.com.au.

“So you’re losing $30 a tonne relative to the previous year and our transport costs have increased as well. If exchange rates continue to climb heading towards parity range, all Australian exporters will suffer some pain to some extent, but if it comes off we’ll gain.”

New Hope recently benefitted from the sale of Arrow Energy to Shell, to the tune of $326 million, but this result will be part of NPAT for FY11.

“Obviously we’ve been looking at opportunities in the coal game for a while and certainly with the money from Arrow it will give us strike power to make acquisitions, but at this stage we haven’t found anything,” says Neale.

With expectations to produce six million tonnes of coal this year, compared to 5.9 million tonnes in FY10, chairman Robert Millner also points to promising exploration prospects.

“Our exploration targets certainly received a significant encouragement from Lenton in central Queensland in the Bowen Basin and we’ll continue to assess the opportunities there, with seismic work and drilling work set to take place over the next few years,” he says.

“Planning is also underway to take advantage of a new mining lease at our largest coal producing operation, the New Acland Mine, which if granted in 2011 could enable production capacity to be incrementally increased up to 10 million tonnes per annum, subject to market conditions, rail and port capacity.”

New Hope shares fell 2.1 per cent this morning to $5.06.


Latest News

INTEREST IN RETAIL PROPERTY SPIKES AS INTERNATIONAL BRANDS LOOK TO ROLL OUT IN AUSTRALIA

AN influx of international retail brands into Australia over the next five years are expected to push up demand for f...

MANTRA BOASTS OF SUCCESSFUL HOTEL INTEGRATION AS NET PROFIT GROWS 15 PER CENT

MANTRA Group (ASX:MTR) CEO Bob East has praised the performance of the company's new Honolulu Hotel as it posted ...

WHITEHAVEN TRIPLES EARNINGS, PAYS DOWN DEBT AFTER COAL PRICE TURNAROUND

THE HIGH coal price has allowed Whitehaven Coal to triple earnings and pay down a large portion of its debt in the fi...

BABY BUNTING BUOYED BY CLICKS AND BRICKS PERFORMANCE

BABY Bunting has grown sales 18.1 per cent to $135.1 million in the first half of FY17, sweetened by the opening o...

Related News

WHY EMPLOYEE-OWNED COMPANIES ARE BEATING ASX200 SHARE PRICES

EMPLOYEE-owned companies command a higher share price than their publicly listed peers, reaping a 17 per cent prem...

RISE OF THE MACHINES HAS WORKERS SWEATING

UP TO 3.8 million Australian workers are fearful their job may soon be terminated by a robot, a new survey has shown....

LESS TALK, MORE SMALL BUSINESS ACTION IN 2017

THE future growth and prosperity of Australian SMEs could be undermined if governments lose sight of the sector...

TEST DRIVE A POST GRAD AT BOND

THERE'S only one way to really move your career into the fast lane, says Bond University, and 'test driving...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter