Aquila swings to FY profit

Resources group offloads assets, expects Eagle Downs production by 2017.

Aquila Resources (AQA) has rebounded into profit as it offloads assets and plans to bring its Eagle Downs project into production by 2017.

Aquila said 2012-13 profit was $317 million following a loss of $238 million in the prior year.

Revenue from the sale of coal was $197 million in the year.

The company said asset sales replaced coal sales as the primary source of income during the year, with the sale of three assets resulting in a net gain of $491 million.

Aquila sold a 50% stake in its Isaac Plains project and a 24.5% interest in Belvedere.

The company said its Eagle Downs project was scheduled for production in the first half of 2017.

"Any short-term profits will likely be generated from the sale of non-core assets," the company said.

In June Aquila carried out redundancies at its Perth and Brisbane offices as well as its Eagle Downs and West Pilbara operations.

The company said it had not been able to agree with its joint venture partners on the fiscal 2014 budget, resulting in minimum expenditure continuing to apply for the West Pilbara project in the coming financial year.