Patriot Coal Corporation, a US-based producer of metallurgical coal used for steelmaking, Tuesday reported its financial results Q4 of 2009, which ended December 31.
The company reported revenues of $503.2 million, (an increased 150 percent compared with $44.2 million in 2008), net income of $10.9 million and diluted earnings per share of $0.12 for the 2009 fourth quarter. Net income and diluted earnings per share were reduced by a $20.2 million restructuring and impairment charge related to coal reserves and infrastructure.
For the full-year 2009, the Company reported revenues of $2.0 billion, net income of $127.2 million, and diluted earnings per share of $1.49. In 2008, Patriot reported revenues of $1.7 billion, net income of $142.7 million and diluted earnings per share of $2.21. Accretion related to shipments on below-market sales and purchase contracts obtained in the Magnum Coal acquisition in July 2008 totaled $66.1 million and $298.6 million, respectively, in the fourth quarter and 2009 year, and $279.4 million in 2008.
"Our stronger operating performance, higher revenues and value-added commercial transactions all contributed to the improvements," said Patriot Chief Executive Officer Richard M. Whiting. "Patriot enters the new year with a more seasoned team and more stable operations. As a result, we are positioned to manage near-term challenges and opportunities, and to prosper as coal markets improve."
Sales in Q4 included 6.7 million tons of thermal and 1.6 million tons of metallurgical coal, an increase from the 6.3 million and 1.5 million tons, respectively, sold in Q3.
For 2010, the Company currently anticipates sales volume in the range of 33.0 to 35.0 million tons. This includes metallurgical coal sales of at least 6.5 million tons, representing a meaningful increase over the 5.4 million tons sold in 2009. Additionally, this guidance incorporates the impact of moves at both longwalls in the first quarter of 2010 and extended moves mid-year as both longwalls relocate to new areas within the mines.
Based on this expected volume, cost per ton is expected to be in the range of $53.00 to $57.00 for the Appalachia segment and $36.00 to $38.00 for the Illinois Basin segment. These estimated costs per ton compare favorably to $57.13 and $37.30 reported in 2009 for the Appalachia and Illinois Basin segments, respectively.
"We are targeting higher metallurgical coal volumes in 2010 from existing operations as a result of the strengthening market," noted Schroeder. "Although the average selling price per ton for 2010 deliveries did not change from the average reported last quarter, the majority of our met coal sales in recent weeks for deliveries in 2010 was crossover coal, sold at very good margins. More than half of our remaining unpriced met coal in 2010 consists of our highest-grade products. Based on current global market conditions, we believe these tons will be sold at prices substantially above the average of business already booked."