On July 29, West Virginia, US-based, CONSOL Energy, a producer of metallurgical coal among other fuel products, issued its financial results for the second quarter of 2010, posting increased sales revenues as a result of rocketing coal sales.
According to the financial results, sales revenues increased 20 percent to $1.29 billion for the second quarter of 2010 compared to $1.07 billion for the second quarter of 2009, with the coal division contributing a record $1 billion towards the total, as compared to $841 million in the year-earlier quarter.
Adjusted EBITDA was $350 million for the quarter ended June 30, 2010, or 18 percent higher than the $297 million reported in the year-earlier quarter.
Net income of $67 million in the second quarter compares with $113 million in the second quarter of 2009. The reason for the fall was the rise in total expenses as the cost per ton for thermal coal used to generate electricity increased and interest expenses jumped in connection to the purchase of Dominion Resources Inc.'s natural gas production business earlier this year. Metallurgical coal shipments also fell compared to the first quarter of the year.
The company produced 1 million mt of low-volatile metallurgical coal, 0.7 million mt of high-volatile metallurgical coal, and 13.2 million tons of thermal coal, for a total of 14.9 million mt. The company sold all 1.7 million mt of metallurgical coal it produced within the quarter.
On the metallurgical coal outlook, CONSOL said, "Given the continued projected growth in the Chinese economy, the shortage of high quality metallurgical coal and relatively low steel inventories, we anticipate that the metallurgical coal markets will continue to provide strong long-term pricing similar to what we have seen in the first half of 2010."