On February 23, Australia-based Macarthur Coal Limited, the world’s largest producer of seaborne low volatile pulverized injection coal used for steelmaking, announced a net profit of AU$36.9 million in its financial results for the first half of the financial year 2009-2010 (FY 2009-10) ended on December 31, stating that the coal market is benefiting from the recovery in global steel production.
Macarthur’s net profit of AU$36.9 million (US$32.9 million) in the first half of FY 2009-10 was down 63 percent compared with a net profit of AU$106.9 million in the same period of FY 2008-09. When the same periods are compared, the company’s sales revenues dropped 24 percent from AU$419 million to AU$318.5 million (US$284.1 million). Macarthur’s earnings before interest, taxes, depreciation and amortization (EBITDA) of AU$86.4 million (US$77 million) in the first half of FY 2009-10 were down 48 percent from AU$165 million in the corresponding period of the previous financial year.
Commenting on the results, company CEO and managing director Nicole Hollows said, “Improved market conditions and innovative marketing strategies have allowed the Coppabella and Moorvale mines to resume full production with two excavator fleets returning to service. The company is on track to meet its forecasted sales tonnage of 4.8 to 5 million mt for the 2010 financial year, with a record half year sales result of 2.77 million mt.”