The gains in net profit were 131.9% higher year-on-year, while earnings before interest and taxes increased 121.1% to $250.2 million.

Sales volumes, including purchased coal, lifted 17% year-on-year to 4.61 million tonnes.

Macarthur chief executive and managing director Nicole Hollows summed up the 2008-09 financial year as having contrasting halves due to the impact of the global financial crisis.

“We had to ensure that we managed the challenge of rapidly declining demand for our coal and the corresponding pressure on cash flow while moving ahead in a sustainable way with our growth plans,” Hollows said.

“We were able to procure substantial spot market sales of both thermal and PCI coal to non-traditional customers during the second half of the year, complementing our existing long-term customer base and providing an alternative market for Macarthur Coal’s sales in the future.”

Macarthur has also declared a fully-franked dividend of 13c per share for the financial year, based on paying 50% of the second half net profit of $61.6 million.

In a presentation on the results, Macarthur said global steel production was starting to recover from the slump in the December 2008 and March 2009 quarters.

Given the unprecedented level of Chinese coal imports in 2009, the leading pulverised coal injection coal producer said the key question was whether this would continue.

In response to the tougher times in the last half-year, Macarthur increased thermal coal sales to make up for the slump in demand for PCI coal.

Macarthur said spot sales to non traditional customers represented 55% of total sales in the June half.

The Queensland company’s successful equity raising efforts in June and July provided it with the funds to pursue development of its Middlemount and Codrilla projects.

The grant of the mining lease for further development of its Middlemount mine is expected next month with Macarthur expecting initial run-of-mine coal production of 1.8 million tonnes per annum by 2011.

Coal is estimated to be 70% semi-hard coking and 30% PCI quality.

Owned 70% by Macarthur, commodities trader Noble Group owns the remaining 30% but has an option to increase its stake to 50% for $100 million after the coal handling and preparation plant is completed.

The project has total coal reserves of 57Mt, including 29Mt proved reserves and 28Mt probable reserves.

Macarthur’s 85%-owned Codrilla project will have a feasibility study completed by the June next year.

The company said Codrilla could produce 3.2Mtpa of PCI and thermal coal.

Resources for the project have been upgraded by 30% in the recent financial year.

Total coal resources of 79.5Mt include 42.8Mt measured, 12.7Mt indicated and 24Mt inferred.

Macarthur ended June with a net cash position of $160 million.

Shares in the company lifted 2% this morning to $9.40.