Financial overview
Anglo Coal’s operating profit decreased by 29% to $614 million. This was mainly brought about by a disappointing performance from Australian operations, where port and rail infrastructure constraints across the industry, lower sales prices and an 11% appreciation of the local currency against the dollar resulted in significantly lower earnings.
During the period under review, Anglo Coal Australia has recorded an impairment of $153 million against certain Australian assets to reflect the latest commercial and operational conditions relating to those assets.
| $ million (unless otherwise stated) | 2007 | 2006 |
|---|---|---|
| Operating profit | 614 | 862 |
| South Africa | 414 | 380 |
| Australia | 9 | 279 |
| South America | 227 | 227 |
| Projects and corporate | (36) | (24) |
| EBITDA | 882 | 1,082 |
| Net operating assets | 3,984 | 2,870 |
| Capital expenditure | 1,052 | 782 |
| Share of Group operating profit | 6% | 10% |
| Share of Group net operating assets | 15% | 13% |
In 2007, Yang Quarry was reclassified from Industrial Minerals to Coal to align with internal management reporting. As such, the comparative data has been reclassified.