Solid Energy, the state-owned coal miner reported its full-year earnings ended on 30 June 2010. It achieved the net profit after tax of $67.8m, despite facing the losses worth $6.5m in the first half of the year. The profit has slumped
39% from the last year’s net profit of $110.8m.

The Company generated revenue worth $690 million, plunging 29.6% from the last year’s revenue performance. Two-thirds of the revenue was covered in the second-half of the year. Solid Energy paid $54 million of dividends during the year.

As stated by John Palmer, Chairman, Solid Energy, the decrease in the full year profit has been caused by the feeble demand of coal from offshore lands and weak coal prices. It was also contributed by the prolonged industrial action at the Company's mines.

The profits in the second half surged on account of higher export prices for some hard coking supplies, which increased to US$200 per ton in the fourth quarter from $US100 per ton early in 2009. Other factor was the inclusion of one-off items such as unplanned sales to NZ Steel.

Talking about the yearly expenditure of the Company, it spent $172m on direct capital expenditure, $19m on joint venture with Spring Creek Mining Company and $134m on leased capital items.

With the establishment of $22m of underground coal gasification pilot plant, Solid Energy is expecting the initiation of its gas generation in 2011. Also, it has forecasted the production of coal to go up.