ASX-listed Universal Coal has reported its first complete quarter with EBITDA of AUD$22.5 million and a 4% increase in sales volumes.
This equates to record volumes of 1.85 Mt of product sold to market for the quarter ending March 2019.
The current quarter EBITDA decreased by 32% from the December 2018 quarter, negatively affected by the downturn in the API#4 coal price during the last quarter.
The previous quarter also had the profit benefit of the coal inventory acquired as part of the acquisition of the North Block Complex (NBC).
YTD EBITDA totals AUD$76 million and is therefore well on target to reach the FY2019 forecast results of AUD$93 million, despite the current negative API#4 coal pricing achieved.
This is however offset with the expected total sales volume increase from the original 6 Mtpa to 6.8 Mtpa.
The increase in sales volumes is contributed by increased efficiency at the NBC, and the consistent increase in demand to Eskom from NCC.
Group cash balance increased by AUD$11.5million to a balance of AUD$58.3 million, bearing in mind the delayed dividend distribution of AUD$10.5million payable to shareholders in May 2019.
The company’s cash balance was affected by debt repayments of AUD$4million and the settlement of dividends of AUD$1.4million in the quarter.