Annual production was 14.9 million tonnes and sales were 15.2Mt with strong domestic sales throughout the year and high export prices kicking in during the final quarter. New longwall Mandalong led the increase in production, as well as record output from Angus Place, Awaba and Clarence.
While pre-tax profit was up 15% on the previous year, profit after tax was marginally down on the previous year at $A51.2 million. EBITDA came in at $A29.3 million, up 18%.
Net profit after tax and before minorities was $A36.5 million, down 31%. The result was adversely affected by Munmorah’s poor performance and closure in June 2005, leading to an abnormal charge to the profit and loss account of $A21 million (on a pre-tax basis).
Centennial managing director Bob Cameron said the company was pleased with development during the year, particularly at NSW opencut project Anvil Hill, set to produce 10.5Mtpa of thermal coal by 2008, and propel the company into the export market.
“We have secured the majority of the land over which we intend to mine upon receipt of development approval, and have secured a 30Mt coal supply agreement to supply Macquarie Generation for 12 years commencing in 2008. The project continues to attract strong interest from a number of major overseas power utilities and coal buyers with a view to securing coal from Anvil Hill,” Cameron said.
Centennial lamented equipment supply issues, a direct result of the resources boom worldwide. “Significant costs were incurred in commissioning new or overhauled equipment, with supplier product control and service standards stretched, resulting in an increase in repairs and maintenance expenditure and, more importantly, lost production and sales opportunities,” the company said.
Centennial was upbeat on its financial year 2006 outlook, with the successful start-up of Manadalong and the acquisition of Tahmoor expected to make a positive impact on profitability. Targeted production for the year is 21Mt, enabling the company to take advantage of strong export prices.
Shares in Centennial were trading at $A5.17 this morning.
