RJB stuns City as profits rise by 10%
Wednesday 09 April 1997
The upbeat news followed RJB's announcement on Monday that it had joined forces with National Power and Texaco to explore the development of a new generation of clean coal power stations.
Shares in RJB continued their climb, rising another 7p to 397.5p following Monday's 10 per cent increase.
Richard Budge, chief executive, said he was confident of coming to an acceptable agreement with the three main coal-fired electricity generators when RJB's supply contracts expire next March. He also voiced optimism that RJB would strike deals to develop its clean coal stations with other generators than National Power.
RJB is forecasting that total UK demand for coal will slip from 63 million tonnes in 1996 to 58 million tonnes this year in the face of the "dash for gas" by the electricity industry.
The company predicts that by the turn of the century gas-fired generation will have displaced 50 million tonnes of coal consumption compared with 26 million tonnes last year.
But it believes that improving cost-competitiveness, allied to the arrival of clean coal stations will maintain a market for coal of around 45 million tonnes a year.
The upcoming negotiations with National Power, PowerGen and the Energy Group, formerly Eastern Electricity, will be crucial in determining RJB's medium-term future. Mr Budge said that no talks had yet taken place and judging by past experience, the generators would leave it until the eleventh hour.
However, RJB is pressing ahead with plans to spend nearly pounds 400m this year on the development of its deep mines and other capital expenditure.
Last year's advance in profits was achieved despite a 10 per cent fall in turnover to pounds 1.3bn. Mr Budge paid tribute to the increased efficiency achieved by the RJB workforce which has seen average production costs fall from over pounds 1.30 a gigajoule under British Coal to pounds 1.17.
Buoyed by a strong operating cash flow of pounds 321m, RJB repaid the remaining pounds 160m of bank debt during the year - well in advance of the five-year timescale set out when the group took over the coalfields in December 1994. At the same time RJB repaid pounds 127m to shareholders through two share buy-backs, leaving it with gearing at the year-end of 40 per cent.
peopleContenders for Time magazine's Person of the Year are a mixture of the good, the bad and the holy
tvSteven Moffat reveals the actor was dying to take on the role of the Time Lord and says he is excited to see what he will do with the character
sportBayern Munich 2 Manchester City 3: City come from two down to beat reigning European Champions
newsAs the world remembers Mandela the hero, the prison where he spent 27 years seems all the more brutal
arts + ents... and a chance to paint Booker Prize winning author Hilary Mantel
danceUnder Tamara Rojo's inspired direction, it seems possible that it could challenge the dominance of the Royal Ballet. We meet some established names and rising stars
travelDiscover Uruguay's jet-set beach resort, an Atlantic enclave with plenty of art and culture to explore on the side
The ten coldest places on Earth
Sir Ian McKellen hits back at Damian Lewis' 'fruity actor' claims
Kenyan politician Mike Sonko left red-faced after photoshopping himself next to Nelson Mandela
Krokodil in Mexico? Teenager hospitalised after 'injecting drug into her genitals'
Nelson Mandela memorial: Cheers, jeers and a masterclass from Barack Obama that stole the show
- 1 Mountain goats' miraculous escape from avalanche captured in dramatic video footage
- 2 It’s shameful that our universities have accepted gender segregation under pressure from the most oppressive religious fanatics
- 3 Sir Ian McKellen hits back at Damian Lewis' 'fruity actor' claims
- 4 Kenyan politician Mike Sonko left red-faced after photoshopping himself next to Nelson Mandela
- 5 Selfie at funeral: Cameron squeezes in on Obama snap at Mandela memorial
- < Previous
- Next >
iJobs Money & Business
£45000 - £70000 per annum + Bonus + Benefits: Harrington Starr: Technical Impl...
£65000 - £90000 per annum + Bonus + Benefits: Harrington Starr: Rogue Trading ...
£35000 - £45000 per annum + BONUS + BENEFITS: Harrington Starr: A leading, Cit...
£40000 - £50000 per annum + benefits + bonus: Harrington Starr: Data Analyst -...