(SNL, August 2) – Despite reporting a loss of more than $25 million for the second quarter, Westmoreland Coal Co. on Aug. 2 added its voice to a growing list of producers expecting coal business to pick up in the second half of 2016.
Westmoreland reported a net loss of $25.4 million, or a loss of $1.37 per share, which marked an improvement from a loss of $36.6 million, or a loss of $2.04 per share, in the same period of 2015. Due to a sizable tax benefit, the company performed better over the first half of the year, reporting net income of $5.2 million, or 28 cents per share, compared to a net loss of $48.3 million, or a loss of $2.72 per share, in the first half of 2015.
Westmoreland reported revenues of $711.0 million from 25.8 million tons of coal sold in the first half of 2016, with adjusted EBITDA of $106.5 million and free cash flow of $28.1 million.
“We remain on track to meet our 2016 adjusted EBITDA and free cash flow guidance based on our first half results and the demand trends that have continued to strengthen since June,” Westmoreland CEO Kevin Paprzycki was quoted in an Aug. 2 earnings release. “We delivered second quarter profitability and cash flow right on our plan, which factored in power demand at its lowest during the spring months.”
Paprzycki added that based on expectations, cash flow generation will be stronger in the second half of the year.
Westmoreland maintained its 2016 coal sales guidance of 53 million to 60 million tons and adjusted EBITDA of $235 million to $275 million.
“This year, so far, is progressing normally and as we expected,” Paprzycki said. “The strengthening demand, and the resulting cash flow, taken together with our first-half results provide confidence in our ability to achieve our guidance this year.”
