For the June quarter, the Pennsylvania producer reported earnings of $US101 million versus $153.1 million during the same period last year. Last year's second quarter included $59 million in profit from asset sales.

Net income in the second quarter was also down 34% versus 2007’s second quarter, which was due to an asset sale and exchange during the former quarter that brought a total pre-tax income of $100 million (approximately $59 million net) recognised at that time.

Looking period over period at Consol’s total revenue and other income, the story was better with an increase of 14% to $1.21 billion from $1.06 billion. Its revenue from coal sales was up approximately 19%, with gas sales revenue also up more than 58%, both due to higher average prices.

Officials noted, however, that it was negatively impacted by a loss of $11 million on mark-to-market adjustments for three of its freestanding coal sales options; each will reverse as coal is purchased under the options or as they expire, Consol said.

“Higher energy prices were the key factor in the second quarter's results," said Consol president Brett Harvey.

“Despite mixed economic news in recent months, global energy demand still favours this higher pricing environment for the foreseeable future."

He noted the improvement of net income as an indicator of higher pricing, and that the trailing quarter’s improvement was primarily thanks to the return to production for its Buchanan operation.

“The key factor to controlling our unit costs of production is that we must mine the tons we forecast," Harvey added.

“I expect the adjustments that we have made to our operating plans will get us back on track in the second half of the year."

Officials also said that its company-produced coal sales were static when reviewed against last year’s second quarter but up by 1.3 million tons versus the trailing period. Prices were up an average of 16.5% period to period on higher prices and increased demand across the world, and up 11.3% over the period prior.

Looking ahead, Consol reiterated its previous production forecasts for 2009, 2010 and 2011.

“Consol Energy believes it is well positioned to capitalise on this growing demand for coal and natural gas,” Harvey said.

“Our coal reserves are some of the best bituminous coal in the world and we own the most of them in fee.”

The company added that its gas business will also play a large role in that future.