Cloud Peak Energy announced positive second quarter results, making a profit of US$35.3 million compared to a loss of US$52.9 million in 2Q15. Year-to-date, the company remains just in the red with a loss of US$1.1 million compared to a loss of US$57.6 million last year.
“Increasing natural gas prices and a warm start to the summer are beginning to improve the overall outlook towards the coal industry,” said Cloud Peak’s President and CEO, Colin Marshall. “After very low shipments in April and May, we started to see improved shipments in June and are optimistic this trend will continue during the second half of the year.”
Cloud Peak also benefited from contract buyouts from three customers and the impact of reduced reclamation cost assumptions on its asset retirement obligations. The company’s operations remained cashflow negative, however, losing US$11.6 million compared to US$17.1 million last year.
Total revenue in 2Q16 was US$174.2 million, compared to US$244.1 million last year, on production of 11.9 million short t. Year-to-date production stands at 24.9 million short t – down from 35.8 million short t last year.
Edited by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/coal/29072016/cloud-peak-announces-2q16-profit-2016-2113/
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