Gloucester Coal 2008 Profit Gains 30% on Price Gains

By Jesse Riseborough

Aug. 27 (Bloomberg) -- Gloucester Coal Ltd., an Australian coal producer, said full-year profit rose 30 percent after customers agreed to pay record prices.

Net income was A$23.4 million ($20 million), or 28.7 cents a share, in the 12 months ended June 30, from A$18 million, or 22.8 cents, a year earlier, the Sydney-based company said today in a statement. The results confirm guidance given Aug. 11.

Asian steelmakers have agreed to pay three times more for coking coal this year, boosting profits for producers. Prices are expected to remain ``strong'' for the next two to three years, Chief Executive Officer Rob Lord said today on a conference call with analysts.

``We do expect the coming fiscal year to be a record year by a considerable margin,'' Lord said. ``These robust cash flows will allow us to fund dividends and growth.''

Gloucester fell 0.3 percent to A$10.40 at the 4:10 p.m. Sydney time close on the Australian stock exchange. It will pay a final dividend of 16 cents a share.

To contact the reporter on this story: Jesse Riseborough in Melbourne at jriseborough@bloomberg.net