Earnings for the period were $US5.1 million, compared to 2006's $8 million. Meanwhile, revenue on coal produced was up 5.3% to $496.6 million stemming from a 3.2% jump in tons sold as well as higher steam coal prices.
For the year, Massey's revenue on produced coal was $2.05 billion with a net income of $94.1 million, compared to 2006 figures of $1.9 billion in produced coal revenue and $41 million in net income.
"We were pleased to conclude 2007 having ... increased our cash by $126 million and having set a company safety record for the lowest injury incident rate in our history," said Massey CEO Don Blankenship, who noted the NFDL rate for the year was a record-low 2.05 per 200,000 man-hours.
"In all we do, safety is our first priority every day, so this record is something we are very proud of. Running safe mines is the best way to ensure shareholder value."
He called the company's fourth quarter "something of a transition period" due to the commencement of its aggressive expansion projects announced last October.
"Favourable market conditions warrant an acceleration of our expansion plans and we are working very hard to do that," Blankenship said.
"We have asked our members to do a lot in this process, and they have responded exceptionally well by moving the expansion projects forward while maintaining focus on our current operations."
The transition of the Aracoma complex from a longwall to a room and pillar operation impacted Massey's full-year results. However, the changes in mining method and relocation of the largest units of equipment will benefit the company in the future, it noted.
Looking ahead, Massey said it anticipates shipping 41.5-3 million tons of coal in the coming year at an average realised cost of $55-56 per ton. In 2009, it expects shipments of 44-46Mt of products at $57-9/t, and in 2010 that range is anticipated to be 46-8Mt.
"While it is difficult to accurately project pricing two years in the future, the company expects very strong pricing for the remainder of its 2010 tons. Current expectations are for 2010 average price realisation to be in the mid to upper $60s range," the producer said.
Last October, Massey announced a $480 million plan across the board to expand its operations in Central Appalachian mines to increase exports and exploit a jump in global steel demand.
As part of that plan, the company will produce about 8Mt more over the next two years, a feat which would position the producer as the top low-cost producer in the Kentucky, Virginia and West Virginia region.
