target $7.75, page-28

re: half year report disappointing SUMMARY ARTICLE:
Excel Coal's 1H net profit up 116%
20/02/2006 By: Adam Waterworth

Excel Coal Limited (EXL) shares slipped almost 5% this morning following the company announcing a net profit of $52.9 million for the half-year ended 31 December 2005, a record for Excel Coal and representing an increase of 116% over the previous corresponding period (“pcp”).



The company revised net profit guidance for FY 2006, from a range of $95 million to $100 million.

Managing director Mr Anthony Haggarty explained that the period’s increase in profit flowed from expanded coal sales and significantly higher coal prices.

The company noted that coal sales tonnage was up 26% and coal production was up 12% compared to the pcp.

“We maintained a strong financial position during the half year, while paying $32 million in dividends to our shareholders and investing $111.5 million in expansion projects,” he said.

The company said a further cost increase of some $30 million for the Millennium project, made the total over-run approximately $65 million for the design and construction of the coal preparation and handling plant (CHPP).

Commenting on the company’s outlook, Mr Haggarty noted that demand for export coking coal remained strong and the spot market for export thermal coal had rebounded strongly from a period of weakness.

The company advised that a fully franked interim dividend of 13c per share was to be paid in March.

At 1120 AEDT, shares in Excel Coal had slipped 36c to $7.19.