US-based metallurgical coal producer Walter Energy has announced its financial results for the fourth quarter and the full year 2012, reporting solid operational progress during 2012 in the face of challenging market conditions.
In the fourth quarter, Walter Energy registered a net loss of $71 million, compared to a net profit of $80.2 million in the corresponding quarter of 2011. The loss includes impairment and restructuring charges of $6.8 million primarily in connection with a reduction in spending at the Aberpergwm mine in the United Kingdom. In the given quarter, the company's sales revenues amounted to $479 million, down 31.9 percent year on year, primarily due to reduced demand and pricing for met coal.
During 2012, Walter Energy posted a net loss of $1.06 billion, compared to a net profit of $363.6 million in the previous year. The sales revenues of the company decreased by seven percent year on year to $2.4 billion.
In 2012, Walter Energy sold 10.4 million mt of metallurgical coal, up 19 percent year on year, while the fourth quarter sales volume amounted to 2.5 million mt, up from 2.4 million mt sold in the fourth quarter of 2011. In 2012, Walter Energy achieved a record metallurgical coal production of 11.7 million mt.
"Although there are clear signs of improving trends in global demand and pricing for met coal, our current outlook for 2013 remains cautious and we are focused on driving further efficiency in our business. We currently expect sales and production of met coal in 2013 to be in line with 2012. However, we are extremely well positioned to increase sales and production to capitalize on anticipated improvements in pricing and demand when market conditions warrant." said Walt Scheller, Walter Energy CEO.