Powder River Basin coal miner, Cloud Peak Energy, has announced a drop in earnings and for Q3 compared to the same period last year.
Coal earnings fall
The company announced EBITDA of US$ 70.9 million for Q3, down from US$ 108.4 million in same quarter last year. Shipments from the company’s three mines totaled 23.1 million short t, down from 24.4 million short t, in 2012 due to operational and train delays related to several rain events. Despite this, the company remains cautiously optimistic for the year as stockpiles of Powder River Basin coal continue to decline.
Positive signals for US coal?
“Customers are continuing to take their contracted coal and are burning down their coal inventories as a result of higher natural gas prices and steady coal burn,” the company said in a statement. “We expect US total coal demand for the full year 2013 to increase by around 50 million short t compared to 2012. This rebound in demand has reduced inventories of Powder River Basin coal stockpiles to 71 million short t at the end of September, down from 92 million short t at the same time last year. We continue to be optimistic that the steady coal burn and continued reduction in Powder River Basin inventories will lead to prices moving higher.”
Adapted from press release by Jonathan Rowland
Read the article online at: https://www.worldcoal.com/coal/31102013/coal_cloud_peak_energy_announces_third_quarter_results_coalnews_207/