Plenty of energy in coal, says Soul Patts

INVESTMENT house Washington H Soul Pattinson remains bullish on coal, despite the rise in activist shareholders demanding greener credentials.

Chief executive Todd Barlow also says the company is not tied to making “emotional” investment decisions, highlighting its agreement to sell its 19.3 per cent stake in Australian Pharmaceutical Industries to Wesfarmers, ending its 150year history with pharmacies.

“We see coal as having a future,” Mr Barlow said. “It’s an industry that happens to be a pretty large industry in Australia and responsible for one of our largest exports.”

“Coal is the largest source of electricity generation in the world, and in Asia it’s actually a bigger and more important part of our energy mix.”

Soul Patts’ share price surged almost 6 per cent to $37.74 on Thursday after its full-year regular profit soared 93 per cent to $328.1m in the year. Its investment in miner New Hope contributed $61m to net profit, up 45 per cent.

Soul Patts will pay a final dividend of 36c a share, fully franked.