Westmoreland Coal Co. has announced improved 2Q16 results compared to the same period in 2015 with a net loss of US$25.4 million compared to US$36.6 million in 2Q15. Revenues also rose to US$356.3 million compared to US$349 million in 2Q16.
Quarterly coal sales totalled 12 million short t, down from 13.3 million short t in 2015. US coal sales totaled 4.7 million short, while Canadian sales were 5.6 million short t. Meanwhile, its Westmoreland Resource Partners (WMLP) subsidiary sold 1.7 million short t.
Over the first six months of the year, however, Westmoreland moved out of the red with a profit of US$5.2 million on revenues of US$711.0 million t from 25.8 million short t sold. Cash flow provided by operating activities was US$37.4 million. The company has US$35.9 million in cash and cash equivalents at 30 June.
“We remain on track to meet our 2015 adjusted EBITDA and free cash flow guidance based on our first half results and the demand trends that have continued to strengthen since June,’ said Westmoreland CEO, Kevin Paprzycki. “We delivered second quarter profitability and cash flow right on our plan which factored in power demand at its lowest during the spring months."
Paprzycki was also confident that the company would meet its full-year guidance of coal sales of 53 – 60 million short t and adjusted EBITDA of US$235 – US$275 million.
Westmoreland Coal Co. owns opencast coal mines in the US and Canada, underground mines in Ohio and New Mexico, a char production facility and a 50% interest in an activated carbon plant. It also owns the general partner and a majority interest in Westmoreland Resource Partners, as well as the two-unit ROVA coal-fired power plant in North Carolina.
Edited by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/coal/02082016/westmoreland-coal-achieves-profit-in-1h16-2016-2140/