On August 25, Australia-based low-volatile metallurgical coal producer Macarthur Coal Limited announced a net profit of A$241.4 million in its financial results for the financial 2010-2011 ended June 30, 2011, due to the sharp increase in coking coal prices.
Macarthur's net profit of AU$241.4 million (US$252.6 million) in FY 2010-11 was up 93 percent compared with a net profit of AU$125.06 million in FY 2009-10. When the same periods are compared, the company's sales revenues increased 2.5 percent from AU$670.5 million to AU$687.3 million (US$719.1 million).
According to the Macarthur statement, the heavy rainfall and flooding across Queensland caused coking coal prices to increase significantly. Even though the unseasonal rainfalls led to a declaration of force majeure for customer contracts in December 2010, Macarthur recorded attributable coal sales of 3.9 million mt for the financial year 2010-11, within its revised target range of 3.8-4.0 million mt, but below the original target of 5 million mt product coal.