Net profit after tax for the 2003/04 year is expected to be $4.0 to $5.5 million compared with the previous forecast announced on 9 February 2004 of $6.0 to $7.5 million.

 

DBCT will operate at half capacity for six weeks following the derailment of the reclaiming machine on February 15.

 

Macarthur said the $2 million change to profit primarily relates to a reduction of $5.2 million due to the DBCT incident; an increase of $1.8 million due to an anticipated one off income tax expense adjustment for tax consolidation; and the results for the half year to 31 December 2003 being $1.5 million better than expected.

 

Assumptions used in the revised profit forecast include $A/$US exchange rate of $0.77;

sales of 4.5 million tonnes of coal produced at Coppabella and Moorvale (Macarthur Coal's share 3.3 million tonnes); and an allowance for some coal to be shipped from Gladstone Port.

 

Macarthur have also assumed DBCT throughput: 40% of nameplate capacity for the two weeks commencing 23 February 2004; 50% of nameplate capacity for the following four weeks; and a subsequent stepped increase to 90% of pre-incident capacity. The majority of coal to be shipped in April, May and June at JFY03 prices due to shipping delays extending the delivery of JFY03 contracted tonnage beyond March 2003. Force majeure has been declared as a consequence of the reduction in throughput capacity at DBCT.

 

"The company is doing everything it can to mitigate the impact of the incident on customers and shareholders. We are fast tracking plans to utilise alternative port facilities. We are also working very closely with customers to manage the shipping program in accordance with the reduced capacity and will endeavour to ensure that their requirements are met,” said Macarthur CEO Ken Talbot.