Queensland coal miner, New Hope (NHC) today delivered a 9.4% increase in operating profit due to strong production and sales growth.
The company reported $36.6 million operating profit for the six months to January 31st, compared to XX beforehand.
New Hope said the result was driven by a 20% increase in operational revenue to $148.8 million due to higher production and sales tonnages from New Hope’s Queensland mines, and higher average US sale prices.
However, the net profit of $36.6 million attributable to shareholders was down 8.6% on the previous corresponding period, due to one-off asset sales.
New Hope chairman Robert Millner said New Hope had produced 21% more coal in the past six months than the previous corresponding period.
“Our New Acland mine outside Toowomba was able to increase its production by 59% to 1.9 million tonnes,” he said.
“Coal sales were 20% higher for the period, with 2.3 million tonnes sold in the first six months of the financial year.”
Millner said production would continue to increase as New Hope continued to expand.
New Hope declared a 2.25 cents per share dividend, up from 2.1 cents the previous period.
Earnings per share were 4.5 cents per share, down 0.5 cents, reflecting the non-recurring asset sales.
In its outlook, the company said its annual coal production for the 2008 financial year is likely to increase to about 4.4 million tonnes.
“New Hope’s overall market position remains strong as a contractual coal supplier, with the majority of tonnage fixed at acceptable US dollar price levels for the remainder of the 2008 financial year,” Millner said.
“Cost pressures, especially from fuel and tyre costs, continue to impact New Hope’s margins.”
Shares in NHC were 1 cent down at $2.43.
