Westmoreland Resource Partners LP (NYSE: WMLP), which was founded around several Ohio coal mines, on Oct. 23 reported a net loss for the third quarter.
These results now include Westmoreland Kemmerer LLC, which has a coal mine in Wyoming, for all periods presented. Highlights for the third quarter 2015 include adjusted EBITDA of $16.1 million, compared to $19.6 million in the third quarter 2014 on a pro forma basis.
The company reported total revenues of $94.3 million for the third quarter, compared to $136.4 million for the three months ended Sept. 30, 2014 on a pro forma basis. The decrease of $42.1 million was principally due to a one-time legal settlement for lost coal sales of $17.6 million received during the year-ago quarter, in addition to a decrease of 0.4 million tons sold or $19.7 million compounded by a $1.14 decrease in average selling price per ton or $2.4 million to $44.91 per ton for the three months ended Sept. 30, 2015, from $46.05 for the year-ago quarter on a pro forma basis.
The company reported a net loss of $12.7 million for the third quarter, compared to net income of $14.0 million for the same period last year on a pro forma basis. It had pro forma coal sales of 2.1 million tons in the latest quarter, down from 2.5 million tons in the year-ago quarter.
Westmoreland Resource Partners is a low-cost producer of high-value thermal coal in Northern Appalachia. It markets its coal primarily to large electric utilities with coal-fired, base-load scrubbed power plants under long-term coal sales contracts. A primary customer for these Ohio mines is the Conesville power plant operated by American Electric Power.
