The Virginia producer reported earnings of $US38.8 million for the June quarter 2010, versus the previous corresponding quarter of $15.4 million, prior to its acquisition of Foundation Coal Holdings in a $1.4 billion deal.
Year-on-year, total revenues also grew for the quarter to $1 billion, compared with $387 million for the June quarter 2009.
Coal revenues for the quarter were $894.1 million, versus $335 million in 2009.
The former Foundation operations contributed $430.2 million of coal revenues as well as a 182% increase in metallurgical coal revenues that was driven by a 122% jump in shipments and a 27% rise in average per-ton realizations.
All were able to offset reduced shipment levels for thermal coal in the period, it said.
Alpha shipped11 million tons of Powder River Basin coal, 5.9Mt of Eastern steam coal and 3.3Mt of metallurgical coal during the June quarter, with average realizations rising from $10.81 per ton in the previous quarter to $10.92/t.
Average Eastern steam coal shipment realizations were $66.11/t, compared to $67.40/t in the comparable 2009 quarter, while average realizations for met product jumped to $117.61/t from $98.70/t.
"Amid a turbulent time in our industry with unprecedented regulatory challenges, a bumpy and gradual economic recovery and near-term weakening of metallurgical coal demand and pricing, Alpha once again delivered consistent results during the second quarter, generating EBITDA from continuing operations of $199 million,” the company said.
“During the second quarter, Alpha significantly increased its met coal shipments and realizations, largely offsetting the impact of a month-long longwall move at the Cumberland mine. This compares to the previous quarter, when the Pittsburgh 8 longwall mines in Pennsylvania contributed nearly half of Alpha's EBITDA as met coal shipments were still ramping up.”
Producer chief executive officer Kevin Crutchfield also highlighted Alpha’s continued strong track record for safety performance in its second-quarter results.
"Two of our Pennsylvania operations, the Dora No. 8 mine and the Clymer Preparation Plant, received Joseph A Holmes Safety Awards for 2009, and our entire Alpha Coal West operation, including both the Belle Ayr and Eagle Butte mines, experienced zero reportable accidents during the second quarter,” he noted.
Looking ahead, Alpha is holding fast to its previous shipment volumes guidance across all of its coal segments, and is also maintaining initial guidance for Eastern and Western per-ton coal sales costs and capital expenditures for the year.
“Alpha is positioned to benefit from significant leverage to the robust metallurgical coal market,” Alpha officials said.
The company reported 83% of the midpoint of anticipated 2011 met coal shipments from the Eastern coalfields was unpriced as of July 22.
Also as of that date, Alpha had 94% and 17% of the midpoint of its shipment guidance ranges for Eastern metallurgical coal for this year and next committed and priced at projected averages of $114.04/t and $125.26/t, respectively.
Steam coal shipments for 2010 from western operations are 100% committed and priced at an anticipated average of $10.81/t, and 96% of Eastern steam coal shipments for this year are committed and priced at a projected $65.91/t average based on the midpoint of shipment guidance.
For next year, Alpha had committed and priced 94% of the midpoint of Western steam coal shipment guidance at a projected average $11.81/t.
At current, 62% of the midpoint of Eastern steam coal shipment guidance has been committed and priced at a projected $67.89/t average.
