On August 16, Australian thermal and coking coal producer Centennial Coal announced its financial results for the financial year 2009-2010 (FY 2009-10) ended June 30, reporting that the drop in its profit and revenues is a result of the strengthening Australian dollar and falling export coal prices.
Centennial's net profit of AU$51.5 million (US$46.5 million) in FY 2009-10 was down 28 percent compared with a net profit of AU$82 million in FY 2008-09. When the same periods are compared, the company's sales revenues dropped 10 percent from AU$886 million to AU$800.1 million (US$722.9 million). Centennial's earnings before interest, taxes, depreciation and amortization (EBITDA) of AU$170.5 million (US$154.1 million) in FY 2009-10 was down 18 percent from AU$221.2 million in the previous financial year.
Centennial's net debt of AU$309.4 million (US$279 million) on June 30, 2010 was up 89.4 percent compared with a net debt of AU$163.3 million on June 30, 2009.
The company said that export coal prices, as evidenced by recent Japanese benchmarks, have rebounded and coal price settlements to date for the next financial year are significantly higher.