Improving markets sharpen NRP's bottom line

NATURAL Resource Partners cited a brightening coal market for its second consecutive quarter of record revenues and increased net income, and is now looking at meeting or exceeding the upper limits of its whole-year guidance.
Improving markets sharpen NRP's bottom line Improving markets sharpen NRP's bottom line Improving markets sharpen NRP's bottom line Improving markets sharpen NRP's bottom line Improving markets sharpen NRP's bottom line

Courtesy of Natural Resource Partners

Donna Schmidt

For the period ended September 30, the Texas-based company reported record quarterly revenues of $US80.8 million, a 26% jump from the third quarter 2009 due to production and realized price increases.

Production rose 10% to 12.4 million tons, with the average coal royalty revenue per ton increasing by 11% versus the same period last year to $4.86. NRP said its lessees realized higher prices for both steam and metallurgical coal.

Net income attributable to the company’s limited partners was $39.4 million, up $14.2 million, or 56%, year-on-year from $25.2 million.

"NRP's lessees have continued to receive much higher prices for coal, leading to another great quarter," NRP president Nick Carter said.

"The gradual improvements in the economy evidenced by improving commercial/industrial electricity usage, coupled with the continuing strength of the steel sector, led to our record revenue and an improving outlook."

NRP also highlighted its recently announced acquisition of the coal reserves from the Deer Run mine in the Illinois Basin, its third purchase in a seven-phase deal.

Currently under development, Deer Run is expected to increase the company’s coal royalty production next year and significantly increase 2012 production as the mine’s longwall begins production.

While the producer noted that it had both increased and narrowed its ranges in a second-quarter guidance update, it is maintaining a bright outlook as it looks at the final fiscal period.

“In the third quarter, NRP has continued to see improvements in prices and is now anticipating meeting or exceeding the upper limits of all the ranges except production, which is anticipated to be near the middle of the previously announced range.”

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