Profit after tax was $A586 million on revenue of $2.319 billion, down 13% from 2008.

“Revenue was lower in 2009 compared with 2008 because of lower US dollar-denominated coal prices, which were only partially offset by a weaker Australian dollar against the US dollar,” Coal & Allied managing director Bill Champion said.

“The average US dollar to Australian dollar exchange rate in 2009 was 79 cents compared with an average of 86 cents in 2008.

“Average Australian dollar realised coal prices were 14 per cent lower in 2009 compared with 2008, while Coal & Allied’s total coal shipments through the Port of Newcastle were in line with the prior year and in line with allocated port capacity.”

Champion said higher stripping ratios and increased overburden removal meant an increased workload and higher operating costs in 2009 to the tune of $66 million compared with 2008.

He also noted that the $586 million profit benefited from $36 million in one-off items.

Managed production of saleable coal was 25.2 million tonnes for 2009 and the company shipped 25Mt.

“We expect to see markets continue to strengthen in 2010, with thermal coal and semi-soft coking coal demand remaining buoyant,” Champion said.

“Coal and Allied has entered into long-term take or pay contracts for port nominations at Port Waratah Coal Services effective from January 1, 2010. This will provide the certainty that is necessary to commit to investing in increased production.”

A final dividend of $3.50 per ordinary share, fully franked, was declared.

Coal & Allied, 76%-owned by Rio Tinto, closed up 1.23% at $82.50.