UK Coal to unearth four-fold profits rise

Jan 17 2008 by Andrew Mernin, The Journal

THE UK’s largest coal supplier yesterday said it was gearing up to reveal a four-fold climb in profits to £69m this year.

UK Coal said it expects to announce continued progress and growth in shareholder value with pre-tax profits set to soar from £17.6m in 2006 to £69m in the year ending December 2007.

The fuel company said it was on target to meet 2007 profit forecasts with higher coal prices offsetting a fall in production.

The firm’s production from its four ongoing deep mines last year was lower than in 2006, falling from 7.5 million tonnes to 6.4 million tonnes in 2007. However, surface mine production climbed from 600,000 tonnes to 1.5 million tonnes between 2006 and 2007 as three new mines came on board in the fourth quarter.

Meanwhile, prices for the company’s coal rose around 15% year-on-year to £1.62 per gigajoule in 2007. Last year the group launched a number of projects including a housing scheme at Marley Hill, near Gateshead.