Westmoreland Coal reported a 9.6% growth in its third quarter revenues to US$ 176.8 million, compared with US$ 161.3 million in Q3 2012.
Adjusted EBITDA for the 12 months ending 30th September 2013 increased 30.3% to US$ 115.8 million compared with US$ 88.8 million for 12 months ending 30th September 2012.
Commenting on the results, Westmoreland’s CEO Robert King said: “During the third quarter, favourable weather and low hydro generation continued to generate high demand for power. Our customers ran their plants at high levels and Westmoreland’s mines and plants operated very well, producing US$ 30.1 million in adjusted EBITDA for the quarter. We view this level […] as very good”.
The report also noted improved mining safety across the company: “Westmoreland had a much better quarter resulting in our year-to-date reportable incident and lost time frequency rates coming in at levels below the national average for surface mines. We continue to work diligently at our mines to make sure we provide the safest work environment possible for our employees”.
The company attributed the increase in revenues to stronger electricity demand, resulting in higher coal sales from its mines as well as increased power sales from its utility.
However, expenses for Q3 were higher due to increased costs at Westmoreland’s Absaloka mine in anticipation of higher production, higher royalty rates on coal mined from its Kemmerer mine and a contract adjustment related to employee benefit costs.
Edited from various sources by Katie Woodward
Read the article online at: https://www.worldcoal.com/mining/28102013/westmoreland_coal_benefits_from_stronger_power_demand_193/