Alliance Resource Partners (NASDAQ:ARLP) executives say they are more optimistic about H2 2020 and 2021 after Q2 coal sales and revenues tumbled as expected after it idled mines in the Illinois Basin and eastern Kentucky due to COVID-19.
“Year-over-year power demand in the eastern U.S. declined 7% during the first half, with coal-fired generation falling by a third compared to the first six months of 2019,” CEO Joseph Craft said during today’s earnings conference call.
The company produced 4.3M st of coal during Q2, down 57% Y/Y, and sold nearly 5.2M st, down 49.2% compared with the year-ago quarter.
Alliance posted a Q2 net loss of $46.7M, compared with a $58.1M net profit in a year earlier, while revenues were cut in half from the year-ago quarter.
But the company’s performance “actually came in slightly better than we expected,” CFO Brian Cantrell said, considering the impact of the coronavirus and subsequent shutdowns.