Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Solid Energy’s Financial Position

21 February 2013

Solid Energy’s Financial Position
Solid Energy’s trading position has continued to deteriorate despite a number of initiatives to reduce costs,
preserve cash and restructure the business to meet the on-going challenging global coal market.

Solid Energy Chairman, Mark Ford, says: “We are in discussions with our banks and Treasury on the debt and equity support required for future operations of the business. A restructuring and turnaround plan for the company is being prepared by the newly appointed Board in support of these discussions. We believe that this plan can provide a sustainable future business to meet expected market conditions.”

“Despite some modest recovery of international coal prices from a low of around US$140 per tonne in September last year - down from US$224 in June 2012 and a high of US$350 in January 2011 - the company expects any sustained recovery will be prolonged,” he says. “The company is carrying substantial debt and the half-year result will record a significant loss.

“This coal market downturn has resulted in weak prices negatively impacting the company’s operating results for the half year.

Mark Ford says that the company appreciates the on-going support of Treasury and the company’s banking partners in this difficult and challenging period.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

NZ's Space Programme: Rocket Lab Makes It To Space (But Not Orbit)

Electron lifted-off at 16:20 NZST from Rocket Lab Launch Complex 1 on the Mahia Peninsula in New Zealand. It was the first orbital-class rocket launched from from a private launch site in the world. More>>

ALSO:

Earlier:

Budget: Irrigate (Good Times, Come On!)

Additional grant funding of $26.7 million over the next three years plus a capital boost of $63 million towards irrigation investments in Budget 2017 will deliver economic and environmental benefits through better use of water... More>>

ALSO:

Silver Fern Farms: Proposal To Close Fairton Sheepmeat Plant

Silver Fern Farms has advised its people of the proposal to permanently close the site, and has discussed potential transfer options to its other sites in the region as part of the consultation process...
More>>

ALSO:

MPI: Myrtle Rust Appears In Taranaki

The nursery in Waitara (just north of New Plymouth) reported suspected myrtle rust symptoms on young plants to the Ministry’s 0800 number yesterday (Tuesday). More>>

ALSO: