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

 


Solid Energy posts small first-half loss of $40.9 mln,

Solid Energy posts small first-half loss of $40.9 mln, yet to draw on Crown funding

By Paul McBeth

Feb 28 (BusinessDesk) - Solid Energy, the financially distressed state-owned coal miner, reported a smaller first-half loss is it focuses on containing costs in the face of weak global coal prices, but has yet to draw down on Crown funding put in place to keep the company afloat.

The Christchurch-based SOE made a net loss of $40.9 million in the six months ended Dec 31, down from a loss of $318.2 million when it wore impairment charges of some $222.7 million, it said in a statement. Underlying earnings, a measure that strips out impairments and large one-off items, was a loss of $28.7 million, compared to a profit of $3.5 million, while revenue sank 28 percent to $236.1 million.

“The company’s stringent controls on spending and productivity improvements have had a positive impact on the half year result, but weak global coal markets remain challenging,” acting chair Pip Dunphy said.

“The company’s financial recovery is likely to be prolonged and will depend on a number of factors, including continuing improvement in its business performance and higher prices in international coal markets,” she said.

Still, earnings were slightly ahead of expectations, and the company hasn’t needed to draw down under two $50 million working capital facilities made available by the government as part of last year’s restructuring package to reduce the miner’s bank debt.

Earnings before interest, tax, depreciation, amortisation and fair value adjustments fell 17 percent to $15.2 million. The SOE is targeting EBITDAF of $30 million in the 2013/14 financial year, rising to $41 million and $51 million in the following years, according to its Statement of Corporate Intent.

The result comes days after would-be Denniston Plateau coal miner Bathurst Resources said it will lay off 29 staff and clamp down on costs in an attempt to ride out the lowest world prices for coking coal in the past nine years. Solid mines similar coals at its nearby Stockton mine.

The SOE cut costs by $74.2 million to $255.5 million, having slashed its workforce to 867 people as at Dec 31 from 1,658 in July 2012.

Solid Energy lifted export sales of coal 10 percent to 1.1 million tonnes, though New Zealand sales almost halved to 600,000 tonnes due to New Zealand Steel and Genesis Energy changing their supply arrangements.

The weaker domestic sales weighed on Solid Energy’s cash flow, with an operational outflow of $1.2 million, compared to an outflow of $55.8 million a year earlier.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Gordon Campbell: On The Australians Scoring Trade Points Against Us With The Chinese

It hasn’t been a great year for Trade Minister Tim Groser... To top it off, Australia has just signed a FTA with China that has far better provisions on dairy exports than what New Zealand currently enjoys in our own FTA with China. More>>

ALSO:

Iwi & Local Consultation: Oil And Gas Block Offer 2015 Begins

Energy and Resources Minister Simon Bridges today announced the start of the Block Offer 2015 process for awarding oil and gas exploration permits. More>>

Industrial Action: Stats NZ Throwing Public Money Away Duplicating Data

The Public Service Association (PSA) says Statistics NZ are throwing money away by collecting the same data twice for official statistics such as the Consumer Price Index... As part of the ongoing industrial action, field interviewers who are PSA members are continuing to collect data, but are not sending it through to Statistics NZ. More>>

ALSO:

Other Stats:

Space: Rosetta's 'Philae' Makes Historic First Landing On A Comet

After more than a decade traveling through space, a robotic lander built by the European Space Agency has made the first-ever soft landing of a spacecraft on a comet. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news