Record year for NRP

US coal producer National Resource Partners released its 2005 year-end and fourth quarter results on Tuesday, highlighted by record profits and strong performances.

Donna Schmidt

Coal royalty revenues for the 2005 fourth quarter increased by $US10 million to $37 million on production of 14 million tonnes. Net income for the quarter was nearly $25 million.

For the year ended December 31, 2005, NRP reported total coal royalty revenues of $142 million, a 34% increase over 2004.

Production increased from 48Mt to nearly 54Mt. Net income for the year set a new record for the company, increasing from $59 million to $91.8 million.

With new acquisitions in 2005 funded by excess cash flows, NRP said it was well positioned to continue to benefit from the industry’s current economic boom.

“We now own in excess of two billion tonnes of coal, giving us a current reserve life of approximately 37 years,” NRP chief Corbin Robertson Jr said.

“As we look to the future, our goal is to continue to grow the partnership through acquisitions and by actively managing and developing our current assets.”

Certainly aiding the company’s positive outlook is an acquisition currently underway from Williamson Development Company, formerly known as the Steelhead Development Company. The 144Mt of reserves, to be bought for $35 million, is anticipated to close by mid-year. At prime levels, the company hopes to produce more than 7Mtpa from the deal, which could equate to $16-18 million annually in royalty revenues.

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