Lower sales volumes hit Oxford results

OXFORD Resource Partners has reported losses for both the fourth quarter of 2012 and for the whole year.
Lower sales volumes hit Oxford results Lower sales volumes hit Oxford results Lower sales volumes hit Oxford results Lower sales volumes hit Oxford results Lower sales volumes hit Oxford results

Courtesy, Oxford Resource Partners

Staff Reporter

In a release on Monday the company reported adjusted earnings before interest, tax, depreciation and amortisation of $US47.9 million and a net loss of $26.1 million for the 2012 calendar year, compared to EBITDA of $58.8 million and a net loss of a mere $8.3 million in CY2011.

Oxford cited lower sales volumes from its Illinois Basin operations and increased purchase coal volume and price for the increased net loss in 2012.

For Q4 the company had revenue of $86.5 million, down 10.2% on a year-on-year basis, again citing lower production and higher costs.

"We continue to focus on our core Northern Appalachian operations where we have a very strong committed sales position for 2013 and where we have achieved productivity improvements,” Oxford president and chief executive officer Charles C Ungurean said.

“While coal market conditions continue to be challenging, the year is off to a solid start with first quarter performance expected to show improvement over the fourth quarter.

"We also have the ability to increase production with little incremental cost when market demand strengthens.

“In the meantime, based on current market conditions, we expect to idle production and conclude restructuring activities at our Illinois Basin operations by year-end, while pursuing additional measures to improve our liquidity, including refinancing of our credit facility, further cost cuts and non-core asset sales.”

Oxford expects to produce between 5.8 million tons and 6.3Mt and to sell between 6.4Mt and 6.9Mt of thermal coal in 2013.

Adjusted EBITDA is expected to be in the range of $45-50 million.

Oxford Resource Partners is a producer of steam coal and surface mined coal in Ohio.

The company’s reserves and operations are located in Northern Appalachia and the Illinois Basin to serve its primary market areas of Illinois, Indiana, Kentucky, Ohio, Pennsylvania and West Virginia.

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