Lipari Energy Post Sales Increase in Q4, Despite Challenging Operational Environment

Lipari Energy, Inc. (TSX:LIP) announced their financial results for the fourth quarter and for 2012 year end.

As quoted in the press release:

Fourth quarter 2012 tons sold increased by 11.1% and production decreased by 17.2% over fourth quarter 2011 to 314,269 tons and 258,755 respectively. Fourth quarter revenues increased by 16.6%, as a result of the increase in tonnage sold and average sales price per ton. Lipari generated earnings before interest, taxes, depreciation, depletion and amortization (“EBITDA”) of $1.7 million during the fourth quarter of 2012. Adjusted EBITDA, after accounting for a change in the fair value of warrants, lease expenses and other adjustments, was $2.6 million during the fourth quarter of 2012.

Lipari’s CEO, John Liperote, said:

Lipari’s profit margins continue to be impacted by many significant issues and challenges that face producers, transporters and end users of coal. Power plant retirements, production cuts, the ever changing regulatory environment, low cost natural gas and the continuing weak economy all contribute to the uncertainty surrounding the coal industry. Irrespective of these issues we had an 11.1% increase in tons sold during the fourth quarter of 2012 compared to 2011, and with diligent costs monitoring, we are optimistic going forward.

To view the whole press release, click here.