NYSE-listed Consol Energy’s production and sales hit a new record in 2018, marking three consecutive years of production growth at the Pennsylvania mining complex (PAMC).
Sales from PAMC increased by seven-million tons in the fourth quarter, generating revenue of $49.81/t, compared with 6.2-million tons at an average revenue of $46.36/t a year ago.
This brought full-year sales volumes to 27.7-million tons, which exceeded the company’s high-end of its guidance range and marked the third consecutive year of production growth.
“The growth was achieved due to improved demand for our products, as well as our ability to ramp up production and capture that demand improvement. The average revenue per ton for the fourth quarter benefitted from stronger pricing on our export sales and domestic netback contracts compared with the year-ago period,” the US miner said in a statement on Thursday.
Consol said that it expected to ship all its production during 2019, citing below-average inventory levels at several of its customers’ Northern Appalachian rail-served power plants. It had already contracted more than 95% in 2019, 53% in 2020 and 28% in 2021, assuming a base production rate of 27-million tons a year.
In 2018, PAMC, which comprises Bailey, Enlow Fork and Harvey, produced a record 27.6-million tons, eclipsing the previous record of 26.1-million tons set in 2017. Fourth-quarter production came to 6.8-million tons, up from 6.4-million tons in the third quarter and 6.2-million tons in the prior-year period.
"The quarter marked a milestone for Consol Energy, as we completed our first calendar year as an independent publicly-traded coal company. In 2018, we also produced and sold more coal than in any other year throughout the PAMC's 35-year history,” commented CEO Jimmy Brock.
Consol posted adjusted earnings before interest, taxes, depreciation and amortisation of $115.18-million in the fourth quarter, compared with $118.96-million a year earlier.