Coal production and sales increase despite challenging year

11 October 2011

Coal production and sales increase despite challenging year

Coal production and coal sales both increased 6% to 4.0 million tonnes (2010: 3.8 Mt) and 4.1 Mt (2010: 3.8 Mt) respectively in the year ended 30 June 2011, Solid Energy reports in its Annual Report published today.

Chief Executive Officer, Dr Don Elder, says that considering the circumstances of the last year the company’s results - including production and sales up across all parts of the business, revenue up 20%, after-tax profit up almost 30% and return on equity up 20% - were very satisfying.

“The results reflected determination innovative thinking, and hard work by many people to keep our production going, logistics chains moving, sales contracts delivering and development projects advancing,” Dr Elder says. “We’ve had tremendous support in the year, from our suppliers and contractors, particularly Lyttelton Port of Christchurch and Kiwirail, right through to New Zealand Trade and Enterprise and other Government representatives overseas.”

Despite the challenges faced in moving coal from the West Coast to our international customers in the wake of the Canterbury earthquake, exports rose 19% to 2.0 Mt (2010: 1.7 Mt). This was below plan as damage to ship loading infrastructure at Lyttelton following the June earthquake pushed a number of shipments into the 2012 year.

At 54% of the company’s international coal trade, India was its largest export market in the year as continued strong economic growth maintained demand for the company’s hard coking coal. Sales to Chinese and Japanese steel and coke makers from its West Coast export mines also increased. At 2.1 Mt (2010: 2.1 Mt) New Zealand sales were in line with last year.

All the company’s long-term development projects continued to advance successfully.

Solid Energy will hold its Annual Meeting on Tuesday, 18 October, 3.30pm to 5pm at the Middleton Grange Centre for the Performing Arts, entrance off Arthur Street, Upper Riccarton, Christchurch. As the venue capacity is limited, those who wish to attend should email rsvp@solidenergy.co.nz. For copies of the 2011 Annual Report & Accounts contact info@solidenergy.co.nz or go to www.coalnz.com.

ENDS

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