Boston, MA 05/29/2014 (wallstreetpr) – Alpha Natural Resources, Inc. (NYSE:ANR) reported a net loss of $0.25 per diluted share due to the joint venture between Alpha Shale and Rice Energy during the first quarter of 2014.
Lower Shipments Compress Revenues
In first quarter 2014, Alpha Natural generated lower revenues from its business including coal and freight and handling. Total revenues were down by 15% YoY to $1.1 billion due to 9% YoY decline in coal revenue and 15% YoY decline in revenue from freight and handling services mainly due to the lower average realized prices and lower shipments of thermal and metallurgical coal.
During the quarter, Alpha shipped 4.4 million tons of metallurgical coal (1Q2013: 5.1 million tons), 9.4 million tons of Powder River Basin (PRB) coal (1Q2013: 10.0 million tons) and Eastern steam coal of 7.6 million tons (1Q2013:7.9 million tons).
The average realized price per ton of shipments was $89.99 for metallurgical coal (1Q2013: $103.28), $12.26 for PRB (1Q2013:$13.03) and $58.25 for Eastern steam coal (1Q2013: $61.90).
Gain In Adjusted Earnings
Alpha Natural Resources, Inc. (NYSE:ANR) generated higher adjusted EBITDA of $289 million in the first quarter compared to $117 million in 1Q2013. The increase was due to pre-tax gain of $250 million from the joint venture and lower cost of sales ($1.3 billion) and SG&A ($41 million) expenses compared to prior year period.
Subsequent to higher adjusted EBITDA, Alpha generated adjusted net earnings of $15 million or $0.07 per diluted share (1Q2013: adjusted net loss of $104 million or $0.47 per diluted share).
Improved Liquidity
Despite the increase in earnings, Alpha used $54 million of cash from operating activities compare to cash inflows of $65 million in 1Q2013. Capital expenditures during 1Q2014 were $40 million (1Q2013: $44 million).
As of March 31, 2014, Alpha Natural Resources, Inc. (NYSE:ANR) has total liquidity of $2.1 billion; including the cash balance $1.2 billion and more than $0.9 billion of available credit. Total long-term debt as of March 31, 2014 was $3.4 billion.
