Led by record coal sales volumes, revenues increased to a record $US598.6 million ($A636.8 million), an increase of 8.1% compared with the previous corresponding period.
Alliance also posted records in the June quarter for net income, which climbed 32.3% to $137.7 million and EBITDA which grew 19.4% to $213 million.
This has led the Alliance board to increase the cash distribution to unitholders for the June quarter to 62.5c per unit, to be paid on August 14 to all unitholders by the close of trade on August 7.
The distribution represents an 8.5% increase over the 57.625c per unit distribution for the same period last year.
Alliance president and CEO Joseph Craft said the company’s Tunnel Ridge mine turned in its second consecutive solid quarter.
“Our other Appalachia mines, MC Mining and Mettiki also performed well, driving our costs per ton to lowest level ever for this operating segment.
“Record coal sale volumes also contributed to our outstanding results this quarter as coal inventories fell to about 501,000 short tons.”
Coal sales volumes for the quarter were up 5.6% to a record 10.4 million short tons.
This was thanks to increased volumes from the longwall operation at Tunnel Ridge, the start-up of production at the Gibson South mine and strong sales performance at the Dotiki, Gibson North and MC Mining mines.
Alliance’s total average coal sales price of $55.51 per ton for the quarter was slightly higher than the $55.17 it achieved in the same period a year ago.
Compared to the 2013 June quarter, though, coal production dropped 3.5% to 9.8Mt in the June 2014 quarter. This was mainly due to the continued transition to a new mining area at the Warrior mine, the timing of mine vacation days and the close of the Pontiki mining complex in late 2013.
Alliance recorded about $4.2 million of revenues for surface facility services and coal royalties related to its participation in the development of the White Oak Mine No.1 for the June quarter. That mine contributed to the increase in other sales and operating revenues compared to the June 2013 quarter.
Operating expenses for the quarter rose 1.6% to $352.9 million because the record coal sales led to higher sales-related expenses and increased sales from coal inventories compared to a year ago.
The increase in operating expenses was partially offset by a $7 million insurance settlement related to the adverse geological event at the Onton mine in the 2013 third quarter and the absence of higher cost production due to the Pontiki closure.
Segment adjusted EBITDA expense per ton dropped to $34.03 in the June quarter. That is a 4% improvement on the compared to the previous corresponding period.
General and administrative expenses increased $3.2 million to $19.8 million in the June quarter as a result of higher incentive compensation expenses and other professional services.
Depreciation, depletion and amortisation decreased $1.2 million to $67.1 million in the June quarter compared to the same period a year ago. That is mainly due to the Pontiki mine closure.
