Earnings

Coal & Allied reported a profit after tax of $A804 million in 2008, a 632 per cent increase on the result of $A110 million in 2007.

This reflected very strong demand and record pricing for thermal and semi-soft coking coal that was enhanced through a change in sales mix, with a 37 per cent increase in semi-soft coking coal to maximise returns from the strong semi-soft coking coal market.

This was partially offset by higher operating costs due to increased production and higher input prices. Also, selling and delivery costs were higher in 2008 by $70 million, which included an increase of $100 million in royalty payments to the New South Wales Government.

Demurrage costs were $42 million lower because of reduced vessel queues at The Port of Newcastle.

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