Coal sales revenues also jumped, due in large part to a 14% increase in realised prices for metallurgical coal and a 30% increase in realisation per ton for steam coal. Total revenues for the quarter came in 23% higher than last year, up from $US339.9 million to $US417.6 million.
“We increased mine production in the second quarter, overseas metallurgical coal shipments are running ahead of last year and we’ve expanded margins by capitalising on continued pricing gains across the board,” said an obviously satisfied Alpha president Michael Quillan.
“Alpha has a strong product mix and a reputation both here and abroad for delivering high-value coal blends to both the utility and steel markets. This is one of the reasons our overall coal margins are up nearly 40% through the first half of 2005.” The company’s overall margin per ton for the quarter just ended was up 16% to $US10.55.
Looking forward, Alpha said it anticipated a revenue for the year between $US1.3-1.4 billion.
In related news, Virginia-based Alpha announced it was seeking partner companies to invest in a new coal import facility to be located in Newport News; the venture has a price tag between $US20-S25 million with construction set to begin later this year. Its subsidiary Alpha Terminal Company is the largest stakeholder in Dominion Terminal Associates, which controls an existing facility on the site.
