News Article
Print Send Article Subscribe Bookmark and Share



Macarthur says coal demand strong as production rises


23/10/2008 -

Macarthur Coal Ltd, the supplier of more than a third of the world's pulverised coal, says demand remains strong after delivering a rise in output for the third quarter.

Coal production climbed 22.9 per cent to 1.12 million tonnes during the three months to September 30 as the company's Queensland mines recovered from flooding earlier in the year.

Macarthur said on Wednesday it was evident from the large number of enquires received on a regular basis from potential customers that "demand for coal continues to be strong".

Rio Tinto Ltd last week said Chinese demand for steel-making materials had slowed, while iron ore producer Mount Gibson Iron Ltd has said some of its customers have requested delays to shipments amid the global financial crisis.

Macarthur said it continued to deliver coal to all of its customers and had recently priced several cargoes at levels well above benchmark prices.

Shares in Macarthur gained 63 cents, or 9.89 per cent to close at $7.00.

Macarthur also said it had signed new long-term sales contract with Hyundai Steel, the second largest steel producer in Korea, confirming its position as the market leader in the supply of seaborne, low volatile PCI coal.

The company's coal sales for the quarter rose 39.9 per cent to 1.09 million tonnes.

Macarthur last week upgraded its profit guidance for the first half of fiscal 2009 to a range of between $150 million to $160 million, underpinned by higher coal prices and increased sales.

The company reported net profit of $13.5 million in the previous corresponding half.

Macarthur said on Wednesday that a potential $68 million currency loss on hedging contracts - which has resulted from a fall in the Australian dollar - had been factored into the upgraded profit guidance.

Source: AAP NewsWire

 



Send article to a colleague
To:  
 
 
From:  
 
Message:
(Optional)
 
Confirm:  
Protected by FormShield
 
 
 
 


Most Read News  
A man has died and three others were injured in a vehicle rollover at ...
Comments: 0
Thirteen Australian companies have been named as part of Forbes Magazine's ...
Comments: 0
There is a risk the world will fall into a double dip recession, but ...
Comments: 0
Australia has posted its lowest current account deficit in more than ...
Comments: 0
Treasurer Wayne Swan says a range of upbeat data released on Tuesday ...
Comments: 0
Algae Tec Ltd says it is poised to list on the Australian Securities ...
Comments: 0
Stronger than expected retail trade and building approvals figures have ...
Comments: 0
Leighton Holdings Ltd says it has finalised a $220 million contract with ...
Comments: 0
Figures released on Tuesday confirm the economy most likely grew in the ...
Comments: 0
Credit demand of Australia's small business sector fell sharply in June, ...
Comments: 0