Foresight Energy has reported financial and operating results, setting new records for coal production, sales volume and adjusted EBITDA, for Q2 2014.
Coal sales for the quarter were US$ 266.7 million, up 23.5% from the second quarter of 2013 and 9.9% from Q1 2014.
Foresight also continued its strong cost performance during Q2 2014, reporting a cash cost per ton sold of US$ 19.69/t, resulting in net income of US$ 29.5 million, and adjusted EBITDA of US$ 102.9 million.
Commenting on the results, Foresight President and CEO, Michael Beyer, said: “We are pleased to report another strong quarter of operations with new records for production, sales volumes and adjusted EBITDA.
“The successful quarter was driven by continued strong performance at our existing operations and the contribution from Viking, our fourth longwall, which commenced operations at the beginning of June. The startup of the Viking longwall adds another low cost mine to Foresight’s portfolio of leading underground mining operations.”
Coal sales increased US$ 50.7 million to US$ 266.7 million for Q2 2014 compared to the same period in the prior year. A record 5.4 million t were sold during the quarter at an average realized price of US$ 49.14.
The increased sales volume reflects a year-over-year increase in coal production and improved domestic demand. Domestic sales volumes during the second quarter 2014 increased 1.3 million t to 4.2 million t, a 46.0% increase over Q2 2013 while sales volumes to international markets declined 0.2 million t to 1.2 million t, an 11.2% decline over the comparable prior year period.
The mix of domestic and international sales volumes drove the net price lower for the quarter and reflects the relative strength of the domestic market compared to the international market for new business.
Adapted from press release by Katie Woodward
Read the article online at: https://www.worldcoal.com/coal/05082014/foresight-energy-beats-coal-production-records-1168/