UPDATE 1-Massey Energy's second-quarter profit soars
Thu Jul 26, 2007 6:43PM EDT
reuters.com
(Adds revenues, CEO comment, outlook)
SAN FRANCISCO, July 26 (Reuters) - Coal miner Massey Energy Co (MEE.N: Quote, Profile, Research) said on Thursday second-quarter profit rose sharply, boosted by higher coal revenues from increased prices for new supply contracts.
Net income jumped to $34.9 million, or 43 cents per share, from $3.2 million, or 4 cents per share, a year ago.
Analysts on average were expecting per-share earnings of 39 cents, according to Reuters Estimates.
Coal revenues rose 5 percent to $516.2 million and total revenues were up 11 percent at $617.8 million.
"With metallurgical coal accounting for nearly 31 percent of our revenue, the increasing global demand for high quality metallurgical coal represents a tremendous opportunity for us," Don Blankenship, chairman and chief executive, said in a statement.
Massey's cash balance has increased by $83 million in the first half and Blankenship said "our strong cash flow will provide us with significant opportunities going forward, including acquisitions" and investments in operations.
The Richmond, Virginia-based company projects 2007 produced coal shipments between 40 million and 41.5 million tons, with average coal realization between $51 and $52 per ton.
Average cash cost per ton for the year was projected between $41.50 and $42.50 per ton.
Massey said that, with its current contract position, it projects it will keep average produced coal revenue in the $50 to $53 per ton range through at least 2009. (Reporting by Leonard Anderson) |
