- Alpha Natural Resources (ANR) posted a wider Q4 earnings loss but came in ahead of analyst estimates, sending shares +2.6% premarket.
- Q4 sales of coal fell to 20.6M tons from 25.9M in the year-ago quarter, with the weighted average margin per ton falling to $4.57 from $17.45.
- Recent bouts of very cold weather have increased demand for thermal coal and set “firmer" prices, but the market for metallurgical coal used in steelmaking continues to be “very challenging.”
- ANR says it is changing its 2014 shipments guidance for eastern met and eastern steam coals primarily in response to weak pricing for low-quality met coals, which are selling below thermal prices; now expects to ship 77M-90M tons.
- Capex guidance for 2014 is reduced to $250M-$300M to align levels of capital investment with the updated outlook for shipment levels.
Alpha Natural +2.6% as earnings loss not as bad as expected
Feb 12 2014, 08:42 ET