ERA FY profit jumps 23%
Energy Resources of Australia Limited (ERA) reported NPAT for year ended 31 December 2009 was $272.6 million, up 23% on the previous year. The company said revenue from both sales of uranium and continuing operations were up 55% in the same period to $767.8 million and $780.6 million respectively.
Uranium oxide sales for the year were 5,497 tonnes, the third highest on record.
ERA said revenues from the sale of uranium oxide increased mostly due to an increase in the average realised sales price.
The company reported a slight weakening production for 2009 of 5,240 tonnes, down from 5,412t in 2007 and 5,339t in 2008.
”In 2009 underlying earnings of $272.6 million were the same as net profit after tax,” ERA said.
”In 2008, underlying earnings were $119 million, with net profit benefiting from an insurance settlement related to events in 2006 and 2007 partially offset by exchange losses on US dollar debt.”
The company’s directors also declared a final dividend for the year of 25c per share, fully franked.
Looking to the year ahead ERA expects production, sales and average realised sales price to remain broadly similar to 2009, however the company added that production and sales would be significantly weighted towards the second half as an effect of mine sequencing, lower grades and scheduled maintenance in the processing plant in the first half.
“Higher expenditure on scheduled cyclical maintenance on the mining fleet, along with the expenditure on ERA’s development projects, will adversely impact earnings over the year,” the company said.
As at 1016 AEDT, ERA shares were up 4c to $20.92.
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