Solid Energy asset impairments contribute to $40.2m loss
State owned Solid Energy reported a $40.2m loss for the financial year to June 2012. Putting aside asset write downs the underlying earnings were reportedly $99.7m. Notwithstanding this self described good performance Solid Energy has major restructuring plans underway. These plans include selling off non core businesses such as Nature’s Flame wood pellet operation and the biodiesel business. In addition underground coal mining is to be wound back.
It appears that the coal price has cratered going from a high of USD300/t for hard coking coal to USD225/t by year end. Just how this impacts future performance is not clear.
The partial privatisation is now delayed.