Arch Coal, Inc. reported Monday a net loss of $2.0 billion, or $93.91 per diluted share, for the quarter ending September 30, 2015. The company recorded a $2.1 billion asset impairment charge during the quarter and incurred $149 million of losses related to the bankruptcy of Patriot Coal. Revenues totaled $689 million in the third quarter of 2015, and adjusted earnings before interest, taxes, depreciation, depletion and amortization ("EBITDA") was $135 million.
For the first nine months of 2015, Arch generated adjusted EBITDA of $262 million compared with $164 million in the prior-year period. Total revenues declined to $2.0 billion for the nine months ended September 30, 2015, largely due to lower metallurgical coal prices and output.
In a statement, the company said that “conditions in
US metallurgical coal markets remain challenging due to deteriorating global steel demand, continued strong output from Australia and a strong
US dollar that hinders
US competitiveness.”
Paul A. Lang, Arch Coal’s president and chief operating officer, said: “We believe that announced production cuts and the continued lack of investment in new metallurgical production simply will not be enough to balance the market, and that additional reductions will be necessary across our industry. As a result, we expect pricing for both metallurgical and thermal coal to remain under significant pressure throughout 2016.”