Profit during the 12 months to June 30 climbed 30 per cent $23.45 million compared with the previous corresponding period. The result was in-line with previous guidance after an increase in coal prices offset a 12 per cent fall in sales tonnage.
Gloucester this month secured a price increase of more than 270 per cent for its coking coal contracts with Japanese customers for the Japanese financial year starting April 1.
Thermal and coking coal prices have risen over the past five years amid infrastructure constraints on the east coast of Australia and increased demand from China.
"While the benefits of these increased coal prices did have a positive impact on 2007/08 revenues (primarily the last few months), the benefits are anticipated to accrue substantially in 2008/09 and beyond," chief executive Rob Lord said in a statement.
Gloucester shares dropped five cents to close at $10.40.
Revenue during the 12 months to June 30 climbed five per cent to $159.55 million, while earnings before interest, tax, depreciation and amortisation (EBITDA) gained 22 per cent to $41.9 million.
Gloucester, which operates two coal mines in NSW, said profit had been affected by the stronger Australian dollar and continuing constraints on the Hunter Valley coal chain and the Port of Newcastle.
The company said production had been pared back to meet reduced port allocation, which had led to lower sales volumes.
"They (infrastructure constraints) are here for a couple more years, there's no magic bullet within the next couple of years that is going to make a dramatic improvement to infrastructure," Lord told reporters.
Gloucester said the costs of an expansion in production capacity from 3.2 million tonnes to 4 million tonnes annually had risen by 10 per cent to $33 million after "general industry cost pressures".
The company said the expansion was on track for completion in late 2009.
Gloucester declared a final dividend of 16 cents a share, taking the total for the year to 21 cents.
