TORONTO (minngweekly.com) – US fossil fuels producer Consol Energy recorded a second-quarter net loss, despite producing more coal in the three months ended June 30 than had been expected.
The NYSE-listed company reported a net loss of $13-million, or $0.05 a share, compared with net income of $153-million, or $0.67 a share, in the same period in 2012.
However, Consol widened its quarter-on-quarter net loss from the $1.6-million loss recorded in the first quarter of this year.
Consol recorded $30.8-million in gains from the sale of assets, down from $170.3-million a year earlier. Excluding certain items, the company posted a loss of $0.03 a share, compared with analyst expectations of $0.17 a share.
"The second quarter was challenging, as we incurred the expense associated with the Blacksville mine fire and were not able to realise revenue from the mine's planned sales.
“In addition, during the second quarter, we exerted discipline in a weak Asian market environment, which resulted in overall lower sales volumes and shipments for the rest of the coal segment,” CEO Brett Harvey said in a statement.
He expected to see an improving and stronger level of demand for its domestic thermal portfolio during the second half of the year and the company would continue to look toward asset sales.
US coal producers had to deal with significant challenges this year as lower natural gas prices had reduced the demand for coal, leading coal miners to slash production and lay off workers.
The company has been focusing on building out its natural gas division, in partnership with Hess, by developing its Utica shale holdings, in Ohio.
Consol’s revenue dropped 16% to $1.22-billion, beating analyst expectations of revenue of $1.21-billion.
The company earlier this month reported output for the second quarter totalled 13.8-million tons of coal, compared with second-quarter guidance of between 13.25-million and 13.75-million tons.
It expected third-quarter coal production of between 13.4-million and 13.9-million tons, signalling a somewhat improved appetite from customers.
Consol’s NYSE-listed shares rose 7.74% on Thursday to close at C$30.49 apiece.