Walter Energy, a US producer and exporter of hard coking coal for the global steel industry, has reported income from continuing operations of $116.1 million for the second quarter of 2010, compared to $11.3 million in the second quarter of 2009.
Total coking coal production of Walter Energy in the given period was 1.54 million metric tons, rising by 30.51 percent year on year. The increased production was due to a 54.8 percent improvement in tons produced at Mine No. 7, primarily related to the expansion at Mine No. 7 East. Production costs for the period averaged $65.94/mt, or $10.54/mt lower year on year, primarily as a result of the higher production volumes.
Walter Energy’s coking coal sales totaled 1.63 million metric tons in the second quarter, up 62.0 percent over the same quarter in the previous year, at an average selling price of $212.22/mt FOB port, compared to an average selling price of $125.26/mt in the corresponding quarter of the previous year.
Meanwhile, metallurgical coke sales of Walter Energy in the second quarter of 2010 totaled 87,174 metric tons at an average price of $458.45/mt. In the second quarter of the previous year, Walter Coke sold 25,625 metric tons at an average price of $406.83/mt. Volume and pricing improvements were primarily the result of a strengthening domestic steel market.
In the third quarter of 2010, Walter Energy’s coking coal production is expected to total 1.72-1.91 million metric tons, with production costs expected to average between $55-60/mt.