Macarthur Coal Says Full-Year Profit May Rise 64% on Prices
Macarthur Coal Ltd., the biggestexporter of pulverized coal used by steelmakers, said full-yearprofit may rise as much as 64 percent because of record coalprices and a one-time gain on an asset sale.
Net profit after tax is likely to be in the range of A$185million ($201 million) to A$205 million in the 12 months endingJune 30, compared with A$125 million a year earlier, theBrisbane-based company said today in a statement.
The company cut its output target to a range of 3.8 millionmetric tons to 4.0 million tons, compared with a previousforecast of 4.1 million to 4.3 million tons after record rainsin Queensland’s Bowen Basin.
“The effects of the significant wet weather conditionsacross the Bowen Basin, although disappointing, have resulted inrecord pricing being achieved for metallurgical coal in theApril-June Quarter,” Nicole Hollows, chief executive officer,said in the statement.
Macarthur fell 2.3 percent to A$11.14 at the 4:10 p.m.close of Sydney trading yesterday.
Kobe Steel Ltd., Japan’s fourth-largest steelmaker, agreedin March to pay Rio Tinto Group a record quarterly price forcoking coal after supply from Australia was disrupted by theheavy rain and floods.
Kobe will pay about $330 a ton for the three months fromApril 1, compared with $225 a ton during the previous quarter.