Coal producer Gloucester Coal Ltd
(ASX:GCL) says it achieved a record net profit of $81.7 million for the full year, up from $23.4 million a year ago.
The company says the result was based on revenue from the sale of coal of $307 million compared with $160 million in fiscal 2008, achieved through record sales prices for Gloucester coking and thermal coal.
CEO Barry Tudor says the company’s strong performance has been achieved through its flexible response to changing market conditions.
The company says its expansion to annual production of 2.8 million tonnes is on track and on budget.
The coal producer says customers indicate a more positive outlook for coking coal and the company is positioning itself to take advantage of the expected increase in demand.
Gloucester says export thermal coal prices have improved since the end of the 2009 financial year, with continued strong demand for its thermal coal.
Gloucester recently agreed to supply thermal coal in 2011 and 2012 fixed at a high dollar margin and will continue to seek thermal coal contracts which maximise profit margin and deliver consistent offtake of thermal product.
Gloucester Coal’s net profits over the last five years have been inconsistent.
