Solid Energy profits, dividends well below forecast

Solid Energy chief executive Don Elder. Photo / Martin Sykes.

Solid Energy has reported a record $110.8 million profit in the year to June 30, but the state-owned enterprise is disappointed because it is below half of forecast.

The coal miner had planned to pay the Government $100m in dividends but managed to pay $59.9m.

The profit was up from $34.37m last year.

It was a difficult year with hard coking coal prices falling from US$300 ($414.93) a tonne to US$100 a tonne as the global economy slowed.

"Customers began to defer export shipments and seek substantial price reductions," chairman John Palmer said.

Solid Energy held an annual "stakeholder" meeting in Wellington today at which security guards outnumbered protesters.

There was no disruption during the meeting this year. Last year chief executive Don Elder fended off a cream pie thrown at him.

This year the company was criticised for "spin" on its environmental record and asked for a guarantee of domestic coal supply. The company did not provide a guarantee and rebutted the suggestion of spin.

The stakeholder meetings are designed to improve transparency and are like company meetings. The meeting was attended by State-owned Enterprises Minister Simon Power.

- NZPA