TORONTO (miningweekly.com) – Coal miner Walter Energy’s NYSE-listed stock fell as much as 11% on Tuesday after the miner missed fourth-quarter earnings forecasts and reported a wider adjusted loss, mainly the result of lower volumes sold at lower prices.
Excluding special items, Walter Energy reported an adjusted net loss for the fourth quarter ended December of $137.6-million, or $1.97 a share, compared with an adjusted net loss for the prior-year period of $63.6-million, or $1.02 a diluted share.
Wall Street analysts on average expected an adjusted loss of $1.59 a share on revenue of $326.55-million.
The company, which last month suspended its quarterly dividend on its common stock to enhance its financial flexibility in the current turbulent metallurgical coal market conditions, reported a net loss of $128.1-million, or $1.83 a share, compared with a net loss of $174.3-million, or $2.79 a share, in the comparable period of 2013.
Consolidated revenues were $285.6-million compared with $472-million in the fourth quarter of 2013, reflecting a decrease in average metallurgical coal selling prices of $25.19/t and lower metallurgical coal sales of 900 000 t. The quarter’s results also reflected a $6.15/t fall in the metallurgical coal cash cost of sales and a 23% reduction in selling, general and administrative expenses.
Metallurgical coal sales volumes, including hard coking coal and low-volatility pulverised coal injection product, were two-million tons, down from 2.9-million tons achieved a year earlier. The decline in metallurgical coal sales volumes was mainly a result of reduced sales of coal from Walter Energy’s idled Canadian mining operations.
The company expected metallurgical coal sales this year to be between 8.5-million tons and 9-million tons.
Walter Energy’s NYSE-listed stock fell to $0.97 apiece on Tuesday, but regained ground early that afternoon to trade about $1.02 a share.