Fording Coal riding high

Vancouver — Coal continues to be a hot commodity for Fording Canadian Coal Trust (FDG.UN-T, FDG-N), which reported net income of $218 million for its 2005 fourth quarter, up from $85 million a year earlier. On an annual basis, net income shot to $834 million from $150 million in 2004.

Higher coal prices contributed significantly to the improved performance, though coal sales volumes fell 15% from 2004 levels because of transportation delays.

Fording generates revenue and earnings from indirect interests in producing coal mines in British Columbia and Alberta. Revenues reached $1.8 billion in 2005, up 61% over 2004 revenues. At year-end, cash available for distribution to unit-holders jumped to $722 million from $182 million in 2004.

The stellar financial performance was achieved despite a 16% year-over-year increase in unit costs, reflecting higher energy costs and mine strip ratios. Transportation costs rose 15% over the same period, reflecting higher rail and port rates.