On January 28, St. Louis, US-based Arch Coal, a coal producer whose output includes metallurgical coal, issued its financial results for the fourth quarter and full year of 2010, stating that lower pricing on steam coal sales offset modestly higher pricing on metallurgical coal sales that shipped in the fourth quarter.
According to the financial results, Arch Coal's net income was $47.8 million in the fourth quarter of 2010, compared with a net profit of $1.5 million in the fourth quarter of 2009. Sales revenues in the last quarter of 2010 rose from $725.5 million in the same period of the previous year to $835.4 million. Fourth quarter 2010 adjusted EBITDA of $192.3 million compares with $144.3 million in the same period of 2009.
Arch Coal's net profit in 2010 was $158.9 million compared with a net profit of $42.2 million in 2009. Sales revenues rose from $2.58 billion in 2009 to $3.19 billion in 2010. In addition, 2010 adjusted EBITDA of $724.1 million compares with $458.7 million in 2009.
The company sold 41 million mt of coal in the final quarter of 2010, versus 43.7 million mt in the previous quarter. In 2010, the coal producer sold 161.3 million mt of coal compared with the 2009 sales data of 125 million mt.
7 million mt met coal sale target in 2011
Arch Coal expects total sales volumes, including brokered tons, to be in the range of 155 million to 160 million mt for full year of 2011. The company's sales volume guidance range includes tons destined for metallurgical coal markets (coking and pulverized coal injection/PCI), which the company projects will reach at least 7 million mt during 2011.
"Tight global metallurgical coal markets and growing seaborne thermal demand should help increase US coal exports in 2011, further reducing supply available to domestic power plants," Arch Coal commented.
"Arch Coal achieved a much stronger financial performance in 2010 versus 2009, resulting from substantially higher margins earned in each operating region," said Steven F. Leer, Arch Coal chairman and chief executive officer.