Soul Pattinson profit down on lower coal prices
Washington H. Soul Pattinson and Company Limited (SOL) said its post-tax profit fell 86.9% to $123.4 million for the six months to 31 January 2010. The result came on the back of fluctuations in the earnings of its 60% controlled coal miner New Hope Corporation, which reported earlier in the week.
The previous six months result was buoyed by the injection of $822.5 million, following New Hope’s sale of the New Saraji coal project to a BHP Billiton JV.
Not including one-off items, Soul Pattinson still reported a 17.4% decline in post-tax profit to $97.1 million, citing a reduced contribution from New Hope, which suffered from a strong Aussie dollar and lower coal prices.
In essence Soul Pattinson is a holding company for a range of business, not just in mining.
Soul Pattinson holds a 78% stake in Pitt Capital Partners, a 24.6% stake in Australian Pharmaceutical Industries Limited and a 44.6% stake in Brickworks Limited, amongst others.
Most of these companies said the outlook for the second half of the year was more positive than the first, pointing to a stronger result for Soul Pattinson.
The market value of Soul Pattinson’s listed investment portfolio was $3.9 billion at January 31, up from $2.8 billion a year earlier.
The conglomerate declared an interim dividend of 14c, up from 13c at the corresponding point last year.
At the open Thursday, Soul Pattinson shares were down 2c to $13.60.
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