Arch Coal Reports Higher Revenues on Improved Thermal Coal Prices

Mining Weekly reported that Arch Coal (NYSE:ACI) saw a higher than expected revenue for Q3 on improved thermal coal prices. Revenues dropped 6 percent for the quarter, the numbers still beat analyst expectations.

As quoted in the publication:

Arch reported consolidated coal sales of 35.1-million tons, down 2% from 37.2-million tons in the same period a year earlier. However, the average realised price rose to $19.97/t, up from $18.93/t. Consolidated margins in the third quarter dropped from $7/t in the prior quarter, to $2.35/t in the quarter under review.

The company achieved a 24% quarter-on-quarter rise in cash margin per ton in the Powder River basin and a 7% quarter-on-quarter increase in its bituminous thermal segment. This helped to offset the lower cash margin per ton in Appalachia in the third quarter, which stemmed from the impact of two scheduled longwall moves and costs associated with the idling of the Cumberland River operation.

Arch Coal president and CEO, John Eaves, said:

Looking ahead, we expect our western thermal operations, particularly in the Powder River basin, to benefit from incrementally improving rail services in the fourth quarter of 2014 and in 2015.

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