On July 27, St. Louis, US-based coal producer Patriot Coal issued its financial results for the second quarter of 2010, stating that the metallurgical coal markets remain strong, particularly in the higher grades.
According to the financial results, the net loss of the company was $13.57 million in the second quarter of 2010, compared with a net profit of $31.39 million in the second quarter of 2009 and with a $4.26 million net profit in the first quarter of 2010.
Sales revenues in the second quarter of 2010 saw an increase of 11 percent year on year and of 15 percent quarter on quarter, rising from $485 million in the same period of the previous year and from $464.21 million in the previous quarter to $533.8 million.
The EBITDA of the company was $40.59 million in the second quarter of 2010, compared with an EBITDA of $45.24 million in the first quarter of 2010, decreasing 10 percent, and with an EBITDA of $30.93 million in the second quarter of 2010, increasing 31 percent.
During the 2010 second quarter, the company experienced a major roof fall at the Harris mine. The mine was near the end of its mine life and had been expected to remain in production through mid-2011. Safety considerations led the company to the decision to close Harris. The closing of the mine resulted in a restructuring and impairment charge of $14.8 million in the 2010 second quarter, reflecting to the net income of the company.
Sales in the second quarter totaled 8.1 million mt, including 6.2 million tons of thermal and 1.9 million mt of metallurgical coal. This was slightly lower than the 8.3 million mt sold in the second quarter of 2009, which included 7.3 million mt of thermal and 1.0 million mt of metallurgical coal.