AUSTRALIA: Gloucester Coal Net Falls on Lower Prices, Shipments

by Angela Macdonald-Smith (Bloomberg)
Gloucester Coal Ltd., an Australian coal producer, said first-half profit fell 48 percent because of lower prices and shipping delays at Newcastle, the world's biggest coal-export harbor.

Net income fell to A$11.3 million ($8.9 million), or 14.5 cents a share, in the six months ended Dec. 31, from A$21.7 million, or 27 cents, a year earlier, the Sydney-based company said today in a statement to the Australian Stock Exchange. Sales slid 15 percent to A$77.3 million.

Gloucester said last month that shipping delays at Newcastle port in the state of New South Wales cut first-half coal sales by about 10 percent. Annual contract prices for coking coal, used in steelmaking, fell last year. The company is increasing production of coal burned by power plants to limit a decline in prices.

``We have commenced planning and engineering studies to enable an increase in saleable production of 40 percent from 2 million tons per annum to 2.8 million tons per annum from mid- 2009,'' Chief Executive Officer Gavin May said in the statement.

Gloucester Coal shares fell as much as 8 cents, or 2.2 percent, to A$3.50 on the exchange at 11:36 a.m. Sydney time. First-half production rose 10 percent to about 1 million metric tons, while shipments increased 1 percent to 1.1 million, the company said. About 50,000 tons of coking coal deliveries were delayed in December due to the queue of ships at Newcastle port, which prevented any ships arriving after Dec. 12 from loading until January, it said.


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