Wesfarmers reported net profit of $A1.05 billion and operating revenue of $33.6 billion, helped along by its acquisition of the Coles group of businesses.

Managing director Richard Goyder said the results were pleasing given a tightening economy and the Varanus gas outage which curtailed its Western Australian energy and chemicals operations during June.

The resources division achieved a 25% increase to $423 million in earnings before interest and tax.

Operating revenue jumped 15.6% above last year to $1.3 billion.

The Curragh open cut mine in Queensland produced 8.9 million tonnes (6.5Mt metallurgical coal and 2.4Mt thermal coal).

While sales volumes jumped only 3% on last year, earnings were able to increase 23.7% thanks to record coal prices. This was partly eroded by the appreciating Australian dollar and increased costs.

Wesfarmers said it was continuing a feasibility study into the expansion of Curragh.

At the Bengalla mine in New South Wales, of which Wesfarmers holds 40%, thermal coal sales of 5.6Mt were achieved. Of the sales, Wesfarmers exported 4.6Mt from the mine, pushing its earnings up by 72.4% on last year.

In Western Australia subsidiary Premier Coal achieved thermal coal sales of 2.9Mt, down slightly on last year. Earnings also dropped 12.6% due to increased costs and decreased deliveries.

Wesfarmers was positive in its outlook, citing record export prices underpinned by strong export market fundamentals.

It expects sales of 6.5–6.9Mt of metallurgical coal from Curragh in 2008-09.

Wesfarmers was trading mid-morning today at $32.90.