"Higher volumes and prices for gas plus higher volumes and prices for coal proved to be a winning formula for us," said J. Brett Harvey, president and chief executive officer. "We have been aggressively expanding our gas drilling program and several of our large, underground mines ran very well during the quarter." Harvey said he thought the outlook for the current quarter was equally strong.
Earnings before interest, taxes and depreciation, depletion and amortization (EBITDA) totaled $US187 million ($US96 million). Earnings before interest and income taxes (EBIT) were $US126.4 million ($US33 million). Revenue for the quarter just ended was $US590.7 million versus $US536.9 million for the same period a year ago. Total coal sales were 20.4 million tons while coal production was 20 million tons compared with 19 million tons a year ago.
The average realized price per ton of company-produced coal was $US23.92 compared with $US23.23 for the March 2000 quarter. Production income per ton of coal produced was $3.17 for the quarter just ended compared with $4.04 for the same period a year ago. Adverse mining conditions at Mine 84 in southwestern Pennsylvania continued to impact on income. Production at Mine 84 was 300,00 tons for the period just ended compared with 1.5 million tons for the same period a year ago.
"Coal segment results reflect the fact that we have 23 mining complexes, many of which are running very well and one of which is dealing with extremely difficult and high cost mining conditions," said Harvey. "For example, Enlow Fork Mine produced more than one million clean tons in each month of the quarter and we expect the Bailey-Enlow Fork complex to produce more than 20 million tons for the fiscal year. In addition, our central Appalachian mines in Virginia and eastern Kentucky are running very well."
The results for the nine months of fiscal 2001 were equally encouraging. Net income totaled $US134.3 million, ($US70.2 million), EBITDA: $US372.3 million ($US287.6 million), total coal sales: 57.2 million tons (59.8 million tons), sales of company-produced coal: 54.6 million tons (57.1 million tons), coal production: 52.5 million tons (55.1 million tons).
The average realized price for company produced coal over the nine months was $US23.60 per ton versus $US23.87 per ton.
In other developments, Consol reported that the Loveridge Mine in northern West Virginia began producing coal in March after being sealed after a fire. Loveridge is
expected to produce approximately 1 million tons of coal from a previously developed longwall panel. Once the coal in the longwall panel is depleted, the longwall mining equipment will be moved to the Robinson Run mine and Loveridge will be idled. The mine is expected to complete mining during the current quarter.
Harvey said he thought the outlook for the final quarter of the company's fiscal year and for the next year to be strong. "Based on settlements we have already negotiated on our export coal sales as well as certain domestic coal sales agreements, I expect results from ongoing operations for the current quarter to parallel the results from the quarter just ended," Harvey said.
"Almost half the tons we intend to ship in calendar year 2002 will have been subject to some price adjustment in calendar 2001. Fifty to sixty percent of our 2003 shipments are exposed to price adjustment during the 2001-2002 period.
"We expect the strong pricing environment for coal to persist for at least the next twelve months," Harvey explained. "The continued improvement in coal markets and our plans to expand our coalbed methane gas production lead us to expect a very strong financial performance for Consol Energy during next fiscal year."
