Profits fall sharply for Walter Energy as coal prices sink

Friday, 03 August 2012 01:12:59 (GMT+3)   |  
       

Birmingham, Alabama-based coal miner Walter Energy reported Wednesday that for Q2 2012, net income fell to $32 million, compared to $114 million in Q2 2011. Revenues dropped from $771 million to $678 million over the same period.

Coal prices fell sharply in Q2 as Walter Energy's prices for thermal and metallurgical coal fell by 11 to 13 percent as costs rose.

Q2 met coal sales volumes, including both hard coking coal (HCC) and low-volatility PCI, was a record 2.84 million metric tons (MMTs), an increase of 20 percent over Q1 sales volume of 2.37 MMTs. HCC sales volume was 2.29 MMTs, an increase of 23 percent compared with 1.86 MMTs in the first quarter 2012. PCI sales volume was 0.55 MMTs, up from 0.51 MMTs in the prior quarter.

However, the average Q2 2012 selling price of low-volatility and mid-volatility HCC was $201 per mt, 11 percent lower than the first quarter. The average Q2 selling price for low-vol PCI was $164 per mt, a decrease of 13 percent from Q1.


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