Macarthur Coal Second-Half Profit Gains 4% on Sales

By Jesse Riseborough

Aug. 26 (Bloomberg) -- Macarthur Coal Ltd., the world’s biggest exporter of pulverized coal, reported a 4 percent gain in second-half profit after sales rose.

Net income climbed to A$61.6 million ($51 million) in the six months ended June 30, from A$59.2 million a year earlier, according to a statement from the Brisbane-based company.

“We were able to procure substantial spot market sales of both thermal and pulverized coal to non-traditional customers during the second half of the year,” Chief Executive Officer Nicole Hollows said in the statement.

Macarthur, which sold A$252 million in new shares in June to fund expansion, is in talks to agree its first long-term sales contract in China, the world’s biggest steel producer. Steel demand is starting to recover after contract prices slumped almost two-thirds this year, Chairman Keith De Lacy said.

Macarthur rose 2.4 percent to A$9.41 at 10:20 a.m. Sydney time on the Australian stock exchange. The stock has tripled this year and has a market value of A$2.4 billion. The company will pay a final dividend of 13 cents, it said.

“There are signs the steel markets are starting to recover, we are slowly increasing our production levels and our customers are cautiously optimistic,” Macarthur’s De Lacy said in the statement. The company’s full-year profit more than doubled to A$168.6 million, according to a statement today.

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