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Alpha raises coal sales but posts another quarterly loss

US steelmaking coal producer Alpha Metallurgical Resources increased coal sales to 3.9 million short tons from 3.5 million in the preceding quarter. It recorded a net loss of 9.3 million dollars, smaller than the previous quarter’s loss but larger than a year earlier. The company also disclosed next-year domestic supply commitments and sales forecasts.

Economics & Markets··Evening
Side view of open railcars loaded with metallurgical coal beneath a conveyor structure at a coal terminal in Hampton Roads, Virginia.

Coal sales rise as a quarterly loss persists

Alpha Metallurgical Resources, a US supplier of coal used in steelmaking, reported a loss for the quarter ended in September.[1], [2]

Net loss was 9.3 million dollars, against 12.3 million dollars in the preceding quarter and 5.5 million dollars a year earlier. Adjusted earnings before interest, taxes, depreciation and amortisation reached 29.4 million dollars, compared with 25.6 million dollars sequentially and 41.7 million dollars annually. Coal sales rose from 3.5 million to 3.9 million US short tons from the previous quarter.[1]

Realised prices and unit costs increase

Metallurgical segment revenue excluding freight increased from 421.3 million dollars to 474.1 million dollars from the preceding quarter. Realised revenue per short ton rose from 118.71 dollars to 121.09 dollars, while unit costs increased from 103.07 dollars to 106.93 dollars. Operating cash flow was 46.9 million dollars, compared with 39.9 million dollars sequentially. Quarter-end cash stood at 334.1 million dollars and long-term debt at 10.6 million dollars.[1]

Domestic supply commitments cover next year

Alpha disclosed commitments to supply approximately 3.5 million short tons of metallurgical coal to domestic customers next year at an average price of 135.48 dollars per short ton. It forecast total next-year sales of 14.3–15.7 million short tons, including 13.1–14.1 million of metallurgical coal. Metallurgical unit costs were forecast at 104–110 dollars per short ton. Replacement of terminal equipment damaged in a June storm was expected to take an extended period; alternative Hampton Roads terminals were being used.[1]

References

  1. News sourceAlpha Metallurgical ResourcesAlpha commits 3.5 million tons of coal sales for 2027↩1↩2↩3↩4
  2. News sourceZacks Equity ResearchAlpha Metallurgical (AMR) Reports Q3 Loss, Beats Revenue Estimates↩
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