US coal producer, Consol Energy on August 10, reported that its production totalled 2.4 million short tons in Q2 2020, falling from 7.2 million short tons in the same quarter last year. The company attributed the output decline to reduced demand and increasing force majeure requests from customers during the period due to the COVID-19 pandemic.
Coal sales volumes for the period also decreased 2.3 million short tons which resulted in average revenue of $43.82/short ton, compared to 7.4 million short tons sales and $47.53/short tons revenue in the same period a year earlier. Consol’s average cash margin stood at $17.92/short tons, rising from $16.46/short tons a year earlier. The company recorded a net loss of $21.06 million in the quarter, swinging from a net income of $48.83 million in the same quarter last year.
CEO Jimmy Brock said that the company stopped most of the spending on its Itmann low-vol met coal mine project. This followed a significant spending reduction and $25 million capex deferral in Q1. He also noted that demand for the company’s coal had steadily improved month-over-month since the year-to-date low in May.
