This followed a $1.5 million net loss in the second quarter of 2012.
Adjusted earnings before interest, tax, depreciation and amortisation were $14.2 million for the third quarter, down from the $17.8 million the company recorded in the 2011 Q3.
Distributable cash flow was $3.1 million for the third quarter, down $800,000 from the third quarter of 2011 and $100,000 from the second quarter of 2012.
The company booked $97.2 million revenue for the quarter. It recorded about the same in costs, meaning it finished the quarter with a $29,000 loss.
Then came interest expenses of more than $3 million, which did the bulk of the damage.
The partnership kept a cash margin per ton of $8.07 year on year for the third quarter.
A 5% improvement in cash coal sales improvement was offset by a 6% increase in cash cost of coal sales per ton.
That increase has been attributed to higher purchased coal prices and increased diesel fuel expenses.
Lower sales volumes, primarily from Oxford’s Illinois Basin operations drove the year-on-year decline in adjusted EBITDA.
“We remain highly focused on our core northern Appalachian operations and continue to adjust our Illinois Basin operations to better align our production with expected sales volumes,” Oxford president and chief executive officer Charles Ungurean said.
“Although current coal markets remain weak, natural gas prices have been increasing, setting up what we expect will be an increase in thermal coal demand.”
He said Oxford would be well placed to participate in any market rebound.
“In the near term, we are diligently pursuing the sale of our excess Illinois Basin equipment at acceptable values and further reducing capital expenditures to enhance our liquidity,” Ungurean said.
