Yancoal Australia (YAL) has warned producers are not making necessary cuts in production costs to rebalance an oversupply in the coal market, after swinging to a full-year loss.
In the half-year to June 30, Yancoal swung to a net loss after tax of $749.44 million, a 282.8% fall, against a profit of $410.02 million in the previous corresponding period.
The company said $492.7 million of its losses were due the conversion of US dollar denominated debt resulting from the weakening of the Australian dollar, while an impairment of mining tenements totalled a $343 million loss.
Yancoal blamed falling coal prices for its weak outlook, and said producers were not making necessary cuts in production costs to rebalance an oversupply in the coal market.
Revenue rose 19.5% in the same period to $719.36 million, compared to $601.16 million in the previous corresponding period.
It did not pay a dividend for the half.