Indiana-based Vectren Corp. (NYSE: VVC), which expects to close a sale of its coal mining operations in the third quarter of this year, said Aug. 4 that the coal operations had a net loss for the second quarter of this year.
On July 1, the company announced it had reached an agreement to sell its wholly owned coal mining subsidiary, Vectren Fuels, to Sunrise Coal LLC, an Indiana-based, wholly owned subsidiary of Hallador Energy. Hallador owns and operates coal mines in Indiana and also has coal mine development projects in Illinois.
During the second quarter of 2014, Vectren recorded an estimated loss, including sale-related costs, of approximately $20m, after tax, related to the sale. Total results from the Coal Mining segment, inclusive of the estimated loss on the sale, were a loss of $18.2m in the second quarter of 2014, and a year-to-date loss of $19.3m.
Coal Mining owns, and through its contract miners, mines and then sells coal to Vectren’s utility operations and to third parties through its wholly owned subsidiary, Vectren Fuels. The sales price is $296m in cash, plus a change in working capital from Dec. 31, 2013, until the transaction is closed.