Arch coal continued its streak of profitable quarters, posting a $123.2 million net income, or $6.10 per diluted share.
“Arch turned in another excellent operating performance in the third quarter, achieving robust coking coal margins, strong cost control in our two thermal segments, and healthy shipment levels at our Powder River Basin operations,” said CEO John W. Eaves, in a statement on the quarterly earnings.
The solid quarter was largely the result of improved demand, lower operational costs, and better pricing.
In the company’s conference call today, Eaves expressed “continued optimism” for the company’s overall future performance, including strong outcomes for its coal production in Colorado and West Virginia.
Pall Lang, president and COO, said performance at its Powder River Basin mines, which include Black Thunder and Coal Creek Mines, were also doing well.
“All around great work for the Thunder Basin team,” Lang said.
From the Powder River Basin operations, the company sold 21.5 million tons in the third quarter. The sales were up from 18.8 million tons in the second quarter but down slightly from the 21.7 million sold in the third quarter of last year.
Lang mentioned how PRB operations continue to be impeded by the lack of a meaningful export options, as exists with operations in Colorado and West Virginia.
Lang also discussed a stronger push to carry out reclamation activities at the Black Thunder Mine, alongside continued production, in order to minimize future obligations.
“Arch has always made a commitment to keeping our liabilities at a minimum,” Lang said.
He said the reclamation was not expected to increase production costs.
“We set the stage for a solid end to 2018 and a strong 2019,” Lang concluded.
