Coal miner Solid Energy - one of four state-owned enterprise
energy companies National wants to partially float on the
stock exchange - will deliver a total $50 million in
dividends to the Government this year.
In its full-year to June report released yesterday, Solid
Energy's revenue was up 20% to $829 million and its profit
for the year rose 29% from $67.8 million to $87.2 million,
while the total $50 million dividend to the Government was
down slightly from $54 million last year.
Chairman John Palmer said in a statement yesterday the past
financial year had been "incredibly challenging" for the
company, but Solid Energy had an ongoing pipeline of projects
either completed or in development, to increase both its coal
production and renewable energy businesses.
Earlier in the past financial year Solid Energy started work
on its $22 million pilot underground coal gasification plant
on the Huntly coalfield, then later approved construction of
its $25 million domestic-scale briquette plant in Mataura,
which is scheduled to go into production in 2012.
"These projects will test the viability of technology to
upgrade lower-rank Southland lignites and to access deep
unmineable coal seams in the Waikato and will pave the way
for other large-scale and more complex projects in future,"
Mr Palmer said.
The use of lignite has fired up environmentalists and the
Green Party who see the use of low-grade lignite - estimated
to be up to 15 billion tonnes around the southern South
Island - as contrary to reining in New Zealand's carbon
emissions.
Mr Palmer said it would take "some years to bring these large
potential projects to fruition" but he believed they provided
an opportunity to deliver value to the business and create
significant benefits for New Zealand.
Earnings before interest and tax (Ebit) for 2011 year were up
19% from $116 million the previous year to $137 million.
However, Mr Palmer said that on average, the stronger New
Zealand dollar against the US dollar, offset by hedging,
reduced Ebit by $26 million and Solid Energy's new
development growth projects reduced Ebit by $21.6 million,
relative to last year.
"Over the next one to two years we expect New Zealand sales
to remain steady.
"High international coal prices are expected to continue in
the short term, but trend down in the coming year. Subject to
international economic conditions, we expect continued steady
growth in our businesses," Mr Palmer said.
The overall result was boosted by strong global coal prices
and good production from the Stockton opencast mine at Buller
on the West Coast; up 27% to 1.6 million tonnes.
Revenue rose 20% to $829 million in the year to June, with
coal sales up 6% to 4.1 million tonnes. Despite increasing,
coal volumes were less than planned because of delays at
Lyttelton after the June earthquakes, which pushed the
loading of three vessels into the 2012 financial year.
Solid Energy's biodiesel production was up 34% to 1.8 million
litres, from 1.3 million a year earlier and its wood pellets
production up 53% from 30,000 tonnes in 2010 to 46,000
tonnes, following the first full year of production at its
new Taupo pellet plantMr Palmer said a record 136km of test
drilling had been done during the past year.
Solid Energy's year . . .
• Coal exports - 2 million tonnes, up 20%
• NZ sales - 2.1 million tonnes, similar to
2010.
Work started on $22 million pilot underground coal
gasification plant at Huntly coalfield.
Construction approved for $25 million domestic-scale
briquette plant in Mataura.
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