Net income for the quarter decreased from a gain of $US1.4 million for the fourth quarter of 2004 and a yearly income of $US13.9 million 12 months ago. Massey explained the current year’s loss was due almost entirely to the accounting effects of recent financing activity.

For the fourth quarter, Massey reported coal revenues of $US424 million, a 17% increase over the same period last year, on production of 10Mt.

For the year ended December 31, the company reported coal revenues of $US1.78 billion compared to $US1.46 billion for the previous year. This 22% increase was based on production output of 42.3Mt.

Despite the losses, Massey reported that EBITDA, which is an indicator of income from coal production, increased in 2005 to $US426 million from $US271 million a year ago: a 57% increase.

The company is looking forward to putting a difficult 2005 behind them: “We remain confident in our ability to achieve increased production in 2006,” said Massey chief Don Blankenship.

The company reported that sales commitments for the upcoming year totalled approximately 46Mt, which if reached would represent a 9% increase over 2005.

Despite the company’s rosy outlook for 2006, the year started out on rocky footings for the Richmond, Virginia-based energy giant. The fire that caused the deaths of two miners at its Alma No. 1 mine in southern West Virginia has left the company evaluating the damage caused by the fire and the effect it will have on production. The Alma mine is operated by Aracoma Coal, a Massey subsidiary.