New Hope Corp’s full year profit has dropped by more than a fifth and the company fears it is facing another tough year ahead as coal prices fall.
Coal miner New Hope Corporation is bracing for more tough times ahead after its full year profit slumped by more than a fifth.
Falling coal prices and a strong Australian dollar combined to push New Hope’s net profit down to $58.4 million in the year to July 31.
Revenue dropped 16 per cent to $548.9 million, while shareholders had their final and special dividends cut.
New Hope said that with coal prices expected to remain flat in the short term, it anticipated another tough year ahead.
However, it is on the lookout for acquisitions and holds out some hope that revenue might improve if the Australian dollar continues to soften against the greenback.
It also hopes to win approval to expand its New Acland mine in Queensland’s Darling Downs region, warning that if the project doesn’t go ahead current reserves would be depleted during 2017.
During fiscal 2013/14, New Acland boosted coal production to 4.9 million tonnes.
However, production from New Hope’s West Moreton mines near Ipswich, in Queensland’s southeast, fell to 700,000 tonnes.
The amount of coal exported from Queensland Bulk Handling (QBH), the group’s coal terminal at the Port of Brisbane, also dropped following the closure of Peabody’s Wilkie Creek mine.
New Hope cut its fully-franked final dividend by three cents to two cents a share, and reduced its special dividend from five cents to 3.5 cents.
Shares in New Hope were three cents lower at $2.60 by 1245 AEST.