Earnings plunge by 61% at Wesfarmers coal ops

WESFARMERS Resources’ business recorded earnings of $50 million for the 2015 financial year, 61.5% below the prior year and on coal production from Curragh and its other coal mines that was 1.3% lower.

Lou Caruana

Wesfarmers group managing director Richard Goyder said the significant decline in export coal prices adversely affected earnings in the company’s resources business.

“In this environment, the business achieved good results in productivity improvement and cost control, despite higher overburden removal activity,” he said.

Wesfarmers’ resources and industrial and safety businesses would seek to further reduce costs and improve operational productivity, the company said.

“Recent pricing pressures, as evidenced by declines in the current quarter’s export coal price settlements, present a subdued revenue and earnings environment for the resources business,” it said.

“With volume and margin pressure expected, the industrial and safety business will tightly manage its cost base, while endeavouring to grow sales in existing and new markets.”