Westmoreland Resource Partners swings to net loss in Q3 2015

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.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.