St Louis, Missouri-based Patriot Coal Corporation, a producer and marketer of coal in the eastern United States, Friday reported its financial results for the quarter ended March 31, 2010. The Company reported revenues of $467.3 million, net income of $4.3 million and diluted earnings per share of $0.05 for the 2010 first quarter.
"The changes we made in 2008 and 2009 to idle certain operations, redeploy capital and re-tool mine plans are paying off as we realize benefits from our stronger mine portfolio," said Chief Executive Officer Richard M. Whiting. "The commercial portion of our business also excelled, as we significantly strengthened our priced 2010 metallurgical business and completed an exchange of coal reserves in the Illinois Basin to enhance the future of the Highland operation."
Sales in the first quarter included 6.0 million tons of thermal and 1.6 million tons of metallurgical coal, compared with 7.1 million and 1.4 million tons, respectively, sold in the first quarter of 2009 and 6.7 million and 1.6 million tons, respectively, sold in the 2009 fourth quarter.
Revenues in the 2010 first quarter were $467.3 million, compared with $528.9 million in the prior year first quarter. Revenues in the 2010 first quarter were $61.7 million lower than the prior year as a result of lower tons sold.
"Metallurgical coal markets are very robust, against the backdrop of growing global economies. A shortage of met coal, particularly in the Pacific Rim, is prompting global steel companies to increasingly come to the US to satisfy their coal requirements," continued Whiting. "During the quarter, we reached an agreement to sell approximately 1.5 million tons of met coal for delivery beginning in April 2010 through early 2011 to steel mills in the Pacific Rim. We further increased our 2010 priced position, with metallurgical sales in domestic and Atlantic Basin markets of 1.4 million additional tons."
"Looking forward, we believe metallurgical markets will continue to tighten as the year progresses," concluded Whiting. "We are currently finalizing plans to open the Black Oak metallurgical mine this fall. We have also advanced plans for several additional met coal projects, the production from which will be processed through our existing infrastructure at Rocklick, Kanawha Eagle and Logan County. As previously stated, we will work closely with our customers to understand their longer-term requirements, and we have the ability to adjust our future production levels to serve their demand."