PERTH (miningweekly.com) – Coal producer New Hope’s focus on cost reductions and improved productivity has paid off during the financial year ended June, with the miner remaining in the black, despite slightly lower production volumes and declining coal prices.

ASX-listed New Hope on Tuesday reported net profit after tax and before liabilities of A$125-million for the year, compared with net profit after tax and before liabilities of A$171.1-million in the previous financial year.

Net profit after tax declined to A$74.1-million during 2013, from the A$167.1-million reported in 2012, after accounting for impairments on the carrying value of New Hope’s investment in Dart Energy, Westside Corporation and the Quantex group of companies, which totalled some A$51.4-million.

New Hope reported that operating results during the 2013 financial year were affected by the lower export coal prices and the higher Australian/US dollar exchange rates, as well as slightly lower production volumes owing to lost sales from a three-week rail outage early in the year.

The company had also tapered off production from its West Moreton operation, owing to the current market conditions.

“Against a backdrop of difficult economic conditions for Australian coal producers, New Hope’s focus on increased productivity, low-cost operations and tight management has driven a reasonable 2013 result,” said MD and CEO Rob Neale.

He added that as a vertically integrated and diversified energy company, New Hope was well positioned to withstand the current market conditions and to continue to deliver shareholder value.

During the financial year under review, the company generated revenue of A$656.4-million, down from the A$767.7-million achieved during 2012, following coal sales of six-million tonnes.

The miner has predicted that the weakness in the global thermal coal market was likely to continue throughout 2014, with oversupply likely to limit any significant improvements to spot thermal coal prices in the immediate future.

Production and sales were expected to be slightly lower during 2014 as New Hope ceased mining at its Oakleigh operation, and scaled back production from Jeebropilly from around one-million tonnes a year to 700 000 t/y.

This would be slightly offset by the New Acland mine producing at a rate of 4.8-million tonnes a year, compared with the 4.7-million tonne production rate achieved in 2013.