Energy Resources of Australia (ERA) has reported a strong rise in first half profit, after the price of uranium rose.

The world's fourth largest uranium producer said output for the six months ended June was lower than for the same period last year.

But net profit still grew to $38.95 million, from $5.67 million.

Earnings before interest and tax (EBIT) totalled $54.4 million, up from $12.4 million at the end of the calendar 2007 first half.

Drummed uranium oxide production fell 6% to 2,357 tonnes while uranium oxide sold fell 21% to 1,746 tonnes.

"Uranium prices remain strong," ERA said

The average long term market price for the June half was $US90.83 per pound, up from $US86.67 last year.

Sales for the period were 1,746 tonnes, down from 2,200 tonnes.

Revenue was $167.4 million, up from $114.3 million.

ERA said its revenue was adversely affected to the tune of $26.2 million by the stronger Australian dollar exchange rate.

The also company settled $US32 million in forward exchange contracts during half, at an average exchange rate of 66 US cents resulting in a pre-tax gain of $14.5 million.

ERA declared an interim dividend of eight cents.

ERA shares lost 55 cents, or 2.4%, to $22.65.