Record full year results for Universal Coal
Published by Claire Cuddihy,
Mid-tier coal mining company Universal Coal Plc (Universal) has achieved record results for FY18, with a key highlight being an operating earnings before interest, tax, depreciation and amortisation (EBITDA) of AUS$72 million in line with the updated market guidance provided on 28 June 2018.
The increase in EBTDA has been achieved as the company benefits from two fully operational collieries and a much-improved outlook for coal and pricing. The company currently has both the Kangala Colliery and the New Clydesdale Colliery (NCC) at full production capacity delivering positive results for the period under review.
Universal also achieved an increase in sales tonnes from 3 million tpa last year to 4.7 million tpa (Attr. 2.9 million tpa) for the current year. The majority of the increase was driven by NCC’s first full year of name plate production volumes.
NCC also has a greater exposure to export quality coal, allowing the benefit from exceptionally high export market prices.
The company declared a final dividend of AUS$0.01 taking the full year dividend pay to AUS$0.02. This dividend paid to Universal Coal Plc shareholders, calculates to a dividend payout ratio of 45% of Attributable Net Profit after tax. Additional to this dividend, Universal also paid AUS$6.9 million to shareholders at an operational entity level. This brings the total cash payment of dividends for the year to AUS$17.4 million.
The company increased its Group unrestricted cash balance by AUS$21 million, after taking into account the dividend paid to outside shareholders, capital expenditure of AUS$10.7 million and the payment of AUS$8 million in corporate taxes paid. Cash generated from group operating activities totals AUS$64.1 million – a 144% increase from the 2017 financial year."
Universal Coal CEO Tony Weber commented: “Universal has delivered exceptionally strong financial and operational results for the year ended June 2018, and we have been able to reward shareholders with dividends amounting to AUS$0.02 a share.
“The 2018 results prove that we have cemented our reputation as growth-orientated and cost-effective coal producer. We expect to build on this reputation by successfully extracting minimum value from our producing mines, executing projects that are currently under development, and integrating new operations that we are acquiring.”
He added: “Our results are enhanced by a proud fatality-free production year and with minimal disruptions due to reportable injuries on our respective operating sites. The safety of our workforce remains a constant work in progress and our greatest priority.”
“Over the next few years, we are well-placed to achieve our strategic objective of growing Universal Coal to become a 10 million tpa saleable tonne producer. We also remain resolutely committed to the ongoing distribution of dividends to shareholders.
To read the full report: http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=02016906
Read the article online at: https://www.worldcoal.com/coal/31082018/record-full-year-results-for-universal-coal/
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