Pennsylvania-based metallurgical coal producer Corsa Coal Corp. reported net and comprehensive income from continuing operations of $2.0 million for the first quarter 2018, compared $11.9 million for the first quarter 2017.
Total revenue from continuing operations was $80.4 million for the first quarter 2018, an improvement of 54 percent as compared to the first quarter 2017.
Corsa sold a total of 557,721 tons of metallurgical coal in the first quarter 2018, up 89 percent compared to the first quarter 2017.
Corsa achieved an average realized price per ton of metallurgical coal sold at its NAPP Division of $118.46 for all metallurgical qualities in the first quarter 2018, this average realized price is the approximate equivalent of $164 to $169 on a free-on-board vessel basis and is comprised of a mix of 22 percent sales to domestic customers and 78 percent sales to international customers.
Corsa achieved an average realized price per ton of low volatile metallurgical coal sold (totaling 388,367 tons) at its NAPP Division of $133.92 in the first quarter 2018, this average realized price is the approximate equivalent of $181 to $186 on a free-on-board vessel basis.
Corsa divested its thermal and industrial coal division in March 2018, becoming a pure-play metallurgical coal producer.
As for an outlook, the company said in a statement that strong global steel demand and corresponding high levels of steel production continue to support metallurgical coal prices in both domestic and export markets.
“United States steel trade actions and continued economic growth have led to higher domestic steel prices, increased blast furnace production and added demand for metallurgical coal,” the statement said. “These drivers, as well as the limited availability of high quality, low volatile metallurgical coal, should support current price levels for 2018.”
The company added that export pricing remains favorable for the balance of 2018 with metallurgical coal prices indicative of a tightly balanced supply and demand relationship.