Macarthur Coal has delivered annual net profit at the top end of guidance and says its cash position leaves it well positioned.
The coal miner posted a net profit for the 12 months to June 30 of $125.1 million, down 25.8 per cent from $168.6 million for the previous financial year.
This compares to its guidance, provided last month, of between $115 million and $125 million due to extra tonnage from loading ships earlier than planned. The upgraded guidance was 11 per cent higher than what was given in May.
Revenue from coal sales totalled $670.5 million, down 4 per cent from $695.4 million previously.
The company mined 6.4 million tonnes (Mt) of coal in 2009-10, compared to its target of 6Mt, and sold 5.3Mt, beating its target of 4.6Mt.
It also said it would continue to evaluate its tenement portfolio to deliver organic growth and assess potential acquisitions ‘‘that support sustainable growth’’.
Macarthur said its goal was to double its 2009 production to achieve sales of 9.2Mt per annum by 2014.
It aims to achieve this through the development of the Middlemount mine in Queensland and ‘‘one other mine from the company’s extensive tenement portfolio’’, which ‘‘provides multiple opportunities to develop new coal mines’’.
In the current financial year, Macarthur aims to mine 6.8Mt of coal and sell 5Mt.
Macarthur declared a final dividend of 17 cents per share, fully franked, bringing the total dividend for the year to 25 cents per share, having paid an interim dividend of eight cents per share.
‘‘This is a welcome return to the company’s longstanding policy of paying our loyal shareholders 50 per cent of net profits after tax, after the board decided not to pay an interim dividend in the 2009 financial year because of the impact of the economic downturn,’’ Macarthur said.
Macarthur said its financial result was achieved despite subdued demand for the company’s low volatile PCI coal and lower coal prices for the first three quarters of the financial year as a result of the global financial crisis.
Chief executive Nicole Hollows said the company moved quickly to increase production and deliver a record level of sales when demand showed signs of recovering.
‘‘It is pleasing to see the early decision to return both Coppabella and Moorvale mines (in Qld) to full production resulted in a record level of coal sales for the company,’’ she said.
‘‘Macarthur Coal secured substantial spot market sales for PCI coal to non-traditional customers during the first half of the year and, in the second half, returned to supplying our traditional markets as demand gradually recovered.’’
Ms Hollows said a share purchase plan mid this year that raised about $62 million, combined with strong operating cashflows, left Macarthur well positioned to pursue growth.
Chairman Keith De Lacy said the planned mineral resources rent tax (MRRT) - currently in limbo as Australia’s future government remains undecided - would add no more than two percentage points to the company’s effective tax rate, depending on the price of coal.
This compared to the MRRT’s predecessor, the heftier resources super profits tax (RSPT), which could have increased Macarthur’s tax contribution to up to 60 per cent.
‘‘The MRRT proposal is something that can more easily be accommodated by Macarthur Coal, whereas the RSPT would have had a devastating effect,’’ Mr De Lacy said.
Macarthur shares were placed in a trading halt on Tuesday morning amid reports it seeks to raise between $430 million and $450 million to fund the purchase of a coal tenement in the Bowen Basin from contract miner MCG Group.
The shares last traded at $12.36.
AAP