Energy Resources Australia Ltd (ERA) says the outlook for the uranium market appears positive after the yellowcake miner posted a record annual profit.

Net profit for calendar 2008 rose to $221.79 million from $76.09 million in 2007, after the result was boosted by a large settlement from its insurers.

ERA received $188 million pre-tax for damages and mine disruptions cause by flooding at its Ranger mine in the Northern Territory in 2006 and 2007 and losses suffered due to a failure in an acid plant in 2006.

Nevertheless, underlying earnings totalled $119 million for the year, up 56 per cent on the prior 12 months, and also at a record high.

ERA sold 5,272 tonnes of uranium oxide during 2008 to generate revenue of $495.56 million, up 39 per cent.

The company expects sales tonnes in 2009 to be slightly higher than last year.

For 2008, the average realised sale price was $US32.53 a pound, against $US25.06 in 2007. The spot price of uranium at December 31 was $US52.50 a pound.

Production in 2008 of 5,339 tonnes was in line with production from the previous year.

"The outlook for uranium mining appears positive," ERA said in a statement on Friday.

"ERA continues to position itself to benefit from this by seeking opportunities to add value by expanding, extending and accelerating output."

ERA declared a final dividend 20 cents, taking the total for the year to 28 cents, up from 20 cents in 2007.

At 1143 AEDT on Friday, ERA shares were down 21 cents to $18.79.