UK Coal has posted its first profit in four years after higher production and coal prices sparked a turnaround at its collieries.
The group, a major supplier to Britain's coal-fired power stations, swung from an interim loss of £93.2m to a profit of £22.1m in the six months to June as revenues jumped 81 per cent to £256m and average prices rose 20 per cent. More property sales also helped UK Coal cut its debt by 14 per cent to £207m.
Nearly all of UK Coal's output goes to the electricity sector, where coal accounts for nearly 30 per cent of the UK's electricity generation. Coal-fired plants, however, are facing tough new controls to cut greenhouse gases.Reuse content