Alliance Resource Partners (ARLP), a coal producer based in Tulsa, Okla., announced that its revenue increased in the second quarter due to higher coal prices. The company reported a net income attributable to ARLP of $169.8 million, or $1.30 a share, compared with $163.5 million, or $1.23 a share, in the previous year.
Analysts polled by FactSet had expected per-share earnings of $1.30. However, revenue rose to $641.8 million, which was below the $668 million forecasted by analysts.
The company attributed its revenue and profit growth to a 5.7% increase in the sales price per ton of coal during the quarter. This rise in price helped offset the lower-than-expected revenue.
Joseph Craft III, the Chief Executive of Alliance Resource Partners, noted that they anticipated a surge in demand for energy due to record-breaking heat across the United States. He emphasized the importance of a “reliable, affordable and diverse energy mix” to meet this increased demand. Craft also highlighted the vulnerability of energy supply and the impact of policy decisions on the industry’s reliability.
Despite the positive results, Alliance Resource Partners reduced its coal production and sales volume guidance for the year. This decision was based on the expectation that low natural gas prices would hinder their ability to gain market share.
Overall, Alliance Resource Partners remains optimistic about its future prospects amidst changing market conditions.
