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Losses deepen for UK Coal as demand slumps
BRITAIN'S biggest coal producer, UK Coal, has reported an £81m half year pre-tax loss after problems at its deep mines, slumping demand for coal and the value of its land falling.
The Doncaster-based company said sales fell 7.5 per cent to 159.5m while the loss compared to a 9.9m loss a year earlier.
The value of the group's estate fell to 382.2m – a 9.4 per cent dip on the end of December.
The group mined a total 3.6m tonnes, down slightly on 3.7m tonnes a year earlier. But the average selling price grew to 1.80 per gigajoule, against 1.79/gj in the comparative period a year earlier.
The group struggled with geological problems at its Kellingley and Thoresby mines over the period.
Chairman David Jones said: "Despite the impact of the economic downturn, in mining, our average realised sales price at 1.80 per gigajoule was in line with our expectations and was very marginally above the level we achieved in the same period last year.
While we also faced particular challenges in both deep and surface mining which have reduced our operating profit, we held our total production at the same level as in the first half of last year.
"We are also beginning to see the cash flow benefits of the new and amended contracts we negotiated at the start of this year with our blue chip electricity generator customers.
"In Harworth Estates, our property business, the strength of agricultural land prices and planning gains mitigated the impact of the lower market prices for commercial and residential property."
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Saturday 11 February 2012
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