(Corrects headline to say loss instead of profit.)
Alpha Natural Resources Inc. (ANR), the second-biggest U.S. coal producer, posted a smaller-than- estimated first-quarter loss after an increase in the price of the commodity mined in the Western U.S. and sold to power utilities.
The net loss widened to $110.8 million, or 50 cents per share, from $28.8 million, or 13 cents, a year earlier, the Bristol, Virginia-based company said in a statement today. The loss excluding restructuring costs and other one-time items was 47 cents, smaller than the 57-cent average of 23 analysts’ estimates compiled by Bloomberg. Sales fell to $1.33 billion from $1.93 billion, exceeding the $1.32 billion average of 14 estimates.
The price of thermal coal extracted in the Powder River Basin -- an area than straddles states including Wyoming, where Alpha operates two mines -- averaged $9.74 a ton in the first quarter, 6.9 percent higher than a year earlier. U.S. demand for coal used to generate electricity has recovered as the price of natural gas, a competing fuel, has risen from a decade low reached a year ago.
Alpha has cut about half of its production in the central Appalachian region since it purchased Massey Energy Co. in 2011.
Alpha rose 0.7 percent to $7.47 in New York yesterday. The shares have tumbled 52 percent in the past 12 months.
Peabody Energy Corp. is the biggest U.S. coal producer by revenue.
(Alpha has scheduled a conference call at 10 a.m. New York time. Dial +1-877-407-8029.)
To contact the reporter on this story: Sonja Elmquist in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Simon Casey at email@example.com