Macarthur Coal posts sales increase

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30 Jul 2008

Macarthur Coal Ltd has posted an increase in quarterly coal sales after an easing in shipping congestion and increased usage of stockpiles allowed it to overcome a drop in production. Macarthur, the supplier of more than a third of the world's pulverised coal, said sales during the three months to June 30 climbed 10.3 per cent to 1.22 million tonnes compared with the same period in 2007. The sales increase followed an easing of the shipping queue at the Dalrymple Bay Coal Terminal (DBCT) in Queensland, allowing the company to load more vessels with stockpiled ore than forecast.
Macarthur this month raised its profit forecast to between $80 million and $90 million for the 2008 financial year following the increase in shipments in June through DBCT.
The price of pulverised coal, which is used in the production of steel, has jumped to just over $US300 a tonne this year after heavy flooding in the Bowen Basin of Qld and infrastructure bottlenecks constrained supply.
Macarthur said there continued to be "strong growth" in the steel market and that the flooding and infrastructure constraints were keeping demand for metallurgical coal "tight".
Shares in the company gained 18 cents, or 1.22 per cent to $14.93 by 1339 AEST.
Output for the quarter dropped 4.1 per cent to 943,000 tonnes, with Macarthur's Coppabella mine continuing to recover from flooding experienced earlier in the year.
Macarthur said operations at Coppabella were "gradually recovering" and the company would look at lifting the force majeure situation "later in the year".

Source: Sydney Morning Herald