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For the quarter ended June 30, the Pennsylvania-based company recorded an overall adjusted net income of $US174 million, a 69% spike year-on-year.
The coal division posted its fifth consecutive quarter of record revenue, reporting $1.21 billion.
Total company revenue was $1.5 billion, driven in large part by 16.4 million tons of coal sold paired with higher coal prices. Coal margins were also helped along by the increased prices, jumping $7.09 per ton to $21.56 per ton.
The company said most of the improved average realized price stemmed from the sale of low-vol output, which totalled $207 per short ton FOB for an approximate FOB terminal price of $282 per metric tonne.
Coal production in the quarter totaled 15.4Mt, 1.4mt of which was low-vol. High-vol accounted for 1.5Mt and 12.5Mt was thermal.
Thermal coal production was led by northern Appalachia with 11.3mt, followed by 1.2Mt from central Appalachia. Thermal coal inventory decreased overall by 900,000t to 1.6Mt versus the end of the first quarter of 2011.
“For the first time in decades, Consol’s coal division has generated more cash from our met business than from our thermal business,” the company said.
“This demonstrates our significant presence in the growing metallurgical markets.
That growth, noted president J Brett Harvey, was not limited to the domestic marketplace.
"Strategically, Consol Energy is participating fully in the growth of global coal markets,” he said.
“In 2011, we plan to export 10Mt, which should generate over $1 billion in revenue.”
He also noted that the Baltimore terminal loaded 42 vessels in the second quarter, shipping 3.4Mt, a near record for the producer.
“To accommodate future growth, we are expanding our terminal, we are developing the BMX mine in the Pittsburgh seam, and we are re-starting our Amonate mining complex. All three of these coal projects are driven by increased worldwide coal demand."
Looking ahead, Consol held fast to its 2011 production guidance released just two weeks ago that increased its outlook from 60-62Mt to 62-64Mt. It is also now increasing the 2012 and 2013 guidance by 1Mt to between 60.5-62.5 annually.
