Chinese ban hurts exports
QUEENSLAND’S Dalrymple Bay Coal Terminal said no shipments of coal have been sent to China since the middle of November as it slumped to a $113m annual loss.
China has banned taking new supplies of Australian coal, a decision that has forced producers to source alternative markets.
Exports to China from Dalrymple Bay, which handles a third of Queensland’s coal exports, fell 13 per cent to 14.5m tonnes for the 2020 financial year.
The terminal’s exports handle production from nearly 20 mines and is dominated by metallurgical coal, used for steelmaking, with thermal coal accounting for less than a fifth of supplies.
Dalrymple Bay Coal Terminal fell to a $113m loss for the 12 months to December 31, just ahead of a $115m loss forecast in its prospectus and attributed to $129m of IPO costs. Revenue was $23m, lower than a $38m prospectus estimates.
The company has switched to quarterly payouts with a distribution of $22.5m to be paid for the first three months of the 2021 financial year while an on-market buyback program has also been launched.
The company floated on the ASX on December 8 but has seen its share price languish, trading at $2.05 compared with its $2.57 listing price.
Coal prices have rebounded since the start of 2021 despite ongoing trade tensions.