Shares in Queensland-based Macarthur Coal were halted yesterday to allow the company to raise a reported $430 million in a quick capital issue after it delivered annual net profit at the top end of guidance.
The coal miner posted a net profit for the 12 months to June 30 of $125.1 million, down 25.8% from $168.6 million for the previous financial year.
This compares to its guidance in July of between $115 million and $125 million due to extra tonnage from loading ships earlier than planned.
The upgraded guidance was 11% above what was given in May.
The company said the 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".
"The result is underpinned by a sales record of 5.3 million tonnes, significantly higher than the 4.6 million tonnes achieved in the 2009 financial year," the company said yesterday.
The capital raising will be used to fund the purchase of a coal tenement in the Bowen Basin from contract miner MCG Group.
The shares last traded at $12.36 before the halt was announced.
Macarthur declared a final dividend of 17c per share, bringing the total dividend for the year to 25c per share, having paid an interim dividend of 8c a share.
That’s almost double the 13c paid in 2009.
"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 in the statement.
The company 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."
