Arch Coal has reported a US$ 97 million loss in its Q3 2014 financial report.
The loss is lower than the US$ 128 million Arch Coal reported in Q3 2013.
Total revenues amounted to US$ 742 million for the three months to the end of September. This better-than-expected quarterly revenue was helped by a higher average sales price.
The company said average sales price rose to US$ 19.97/t in Q3, compared to US$ 18.94/t a year earlier.
A majority of analysts had expected total revenues of US$ 719.3 million, according to Thomson Reuters.
Arch reported sales of 35.1 million t of coal over the quarter, down by 2 million t compared to Q3 2013.
The company also cut its 2014 capex forecast to US$ 160 million – US$ 170 million from US$ 170 million – US$ 180 million.
Spokespeople for Arch remained optimistic about the company’s performance.
John Eaves, Arch’s president and CEO, said that the company “delivered a solid operating performance” over Q3 2014. “In particular, our western thermal operations improved cash margins per ton vs the second quarter, due to increased shipment levels, higher price realisations and continued strong cost control.”
“Looking ahead, we expect our western thermal operations, particularly in the Powder River Basin, to benefit from incrementally improving rail service in Q4 2014 and in 2015”, Eaves added. “In addition, we expect our metallurgical coal platform in Appalachia to benefit from a higher contribution by the low-cost Leer mine, coupled with the favourable impact of idling the higher-cost Cumberland River complex.”
Arch continues to successfully execute its plan to control costs and expenses, reduce capital outlays and preserve liquidity," Chief Financial Officer, John Drexler, said in a statement.
Edited by Sam Dodson
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