Thiess profit $8.2m; dividend raised

Press, Volume CXV, Issue 33959, 27 September 1975, Page 18

Thiess profit $8.2m; dividend raised

(New Zealand Press Association—Copyright) BRISBANE. Thiess Holdings, Ltd, coal miner and contractor, increased total group net profit 70 per cent to $A8,151,000 in the year to June 30.

The annual dividend rate has been raised from 15 per cent to 17| per cent, including a bonus payment of 2| per cent. Shares issued in the 1975 bonus and new issues will receive half the final dividend, of 10 per cent (5c a’ share). Total dividends for the year will absorb 1,986,000 dollars compared with 1,359,000 dollars last year.

In the construction division all major projects were proceeding satisfactorily, and the division operated profitably, the directors say. At June 30, incomplete work in hand totalled s92m, compared with sB9m in 1974. South Blackwater and Cal-

lide. coalmines, were profitable for the year. Group turnover increased 52 per cent to s2lom. The profit included capital profits of $76,000 dollars (last year $404,000).

The profit was after tax provision (current and deferr e d ) of $3,103,000 ($2,352,000) and depreciation of $7,839,000 ($4,849,000). Increased government royalties totalling $850,000 were absorbed by customers. The Federal Government tariff of $6 a tonne on coking coal would substantially offset the benefits of price rises for coal to Japan. In a full year the effect on group net earnings would be about $3.5m, the directors say.

Thiess has joined the Utilities Group, 13 United States power- companies, which have linked to sign a conditional letter of agreement with Kennecott Copper, to acquire its subsidiary Peabody Coal Company. The move could clear the way for Thiess to get control of Peabody’s 58 per cent interest in the huge Queensland Coal Consortium, Thiess-Peabody-Mitsui, Pty, Ltd, in which Thiess has a 22 per cent interest. The value of Peabody’s share in T.P.M. is estimated to be between sloom and slsom. The United States Federal

Trade Commission has ordered Kennecott Copper to divest itself of Peabody. The Utilities Group signed a conditional letter of agreement with Kennecott Copper in May. Utilities group was organised in November 1974 for the purpose of purchasing Peabody Coal Company.

The financial consultants for the group are Oppenheimer and Company Incorporated and Kidder, Peabody and Company Incorporated.