Anvil Hill, sold for $212.7 million, and an 86% share held in Austral Coal, sold for $133.9 million, generated a one-off profit of $223 million. This was combined with record profits of $64.3 million from the company’s continuing operations.

“The 2008 financial year has been underpinned by strong production and the settlement of a record export thermal price,” said Centennial managing director Bob Cameron.

“The strength of our operations and prices bode well for a significant uplift in profitability for the 2009 financial year.”

Centennial’s longwall operations performed well during the year, with Mandalong producing a record 4.8 million tonnes in its third full year of operation.

Newstan also returned to full production with a record March 2008 quarter, enabling Awaba to return to the export market.

The group’s continuous miner operations also performed well, with significant improvements achieved at the export-orientated Clarence and also at Myuna, assisting Awaba’s return to export.

The majority of Awaba’s annual production – 773,000t – was supplied to the export market.

The group said progress was made on projects to expand its export capacity in the year, with the new 1.6–1.8Mtpa underground mine at Airly approved by the board.

The $100 million development, located 40km northwest of Lithgow, will produce thermal coal exclusively for the export market and is expected to ramp up early calendar 2010.

The mine will utilise continuous miners and has a mine life in excess of 20 years.

“Beyond the 2009 financial year, Centennial has a sound platform for future growth, Airly the first of several expansions to be formally approved by the directors,” Cameron said.

“Work to increase export capacity at Springvale and Mandalong continues to schedule, with the group’s strategy to increase its exposure to market-priced coal sales on track.”

Centennial was trading up 3.62% mid-morning today at $4.87.