Solid Energy buoyant despite profit drop

A strong dollar and the end of tax losses has led to a big profit fall for state-owned coal miner Solid Energy.

But it says the future is rosy, with a new rail deal, international demand and more power stations on the horizon.

The company announced annual profits of $33.7 million yesterday, down from $56 million the year before.

Revenue is up more than 5 per cent, it is now paying more tax and will also reward its Government owner with a $10 million dividend.