Walter Energy sales increased by 7.7%

Walter Energy sales increased by 7.7% but booked a loss of USD 100 million in Q3.

US based Walter Energy, a major steel grade coal miner in North America and the UK, has reported a net loss of USD 100.7-million on Wednesday, for the third quarter ended September 30.

This is compared with Walter Energy’s USD 1.1billion net loss a year earlier, when it took a USD 1.1billion impairment charge related to its acquisition of Western Coal.

As the metallurgical coal dropped prices, company’s revenue fell nearly 26% to USD 455.8-million. Walter Energy sold total 2.8 MnT of Metallurgical coal which was 7.7% more from previous year, and the cost of sales per ton declined 10.8% to USD117.95/MT.

Walter Energy said a higher metallurgical coal sales volume in the period, as compared with 2012, had partially offset the decline in coal sales pricing, and lower production costs, including improved metallurgical coal cost performance and continued reductions in selling, general and administrative expenses.

“Demand for our products has remained firm, and we have recently seen an improvement in met coal pricing. We look forward to improved financial performance in the fourth quarter and in 2014,” CEO Walt Scheller said.

Rival coal miner, Arch Coal, on Tuesday slashed its production outlook for steelmaking coal, for the second time this year, based on the weak prices.

Walter Energy has 15 mines in three countries and produced 11.7 MnT of coal, with sales of USD 2.4-billion in 2012.