Primarily due to idling of mines in Canada
Walter Energy’s total revenue of $329.5 million in the quarter was down 27.7% from $455.8 million in the year-ago period. The decline was primary due to lower met coal prices, as well as coal sales volume.
The top line was lower than the Zacks Consensus Estimate of $337 million by 2.2%.
Highlights of the Quarter
During the quarter, Walter Energy’s metallurgical coal production decreased 29.5% year over year to 1.95 million metric tons (MMTs). The lower production was primarily due to idling of mines in Canada.
Walter Energy’ sales volume in the reported quarter also fell from the prior-year level. Total volumes sold were 2.3 MMTs, down 17.8% year over year. Out of the total sales volume, hard coking coal (HCC) and low-volatility pulverized coal injection product (PCI) were 2.0MMTs and 0.3 MMT respectively.
Total cash cost of met coal sales per metric ton (MT) during the quarter was $95.91, down 18.7% year over year. The company succeeded in lowering expenses primarily due to a continuous improvement in mining costs.
However, the company had to digest a nearly 17.1% year-over-year decline in the net selling price of coal. The average net price of met coal decreased to $109.31 per MT.
Selling, general and administrative expenses were $16.6 million, down 24.2% from $21.9 million in the year-earlier quarter.