Solid Energy reports after-tax profit

Energy producer Solid Energy New Zealand Ltd. has reported an after-tax profit of US$111 million for the year ended June 30, a record but disappointing result, and below half of forecast, after the global economic downturn saw international coal demand and prices plummet in the second half of the year. Solid Energy Chairman John Palmer says revenue and profits were above plans through to October 2008 but by November international steel makers were running down coal stockpiles and cutting production because of worldwide reduction in steel demand. Every planned December coal shipment was deferred and, through to June, customers continued to cancel or defer significant contracted volumes, impacting heavily on all areas of the business. (October 14, 2009)