Alliance Resource Partners, L.P., said its total revenues for Q2 2024 decreased 9% quarter-to-quarter to $593 million due to transportation delays and reduced coal sales. The loss in revenue was partially offset by an increase in Appalachian coal prices, which rose 3.8% to $65.30/ton compared $62.93/ton during Q2 2023.
“Coal sales volumes during the quarter were impacted by flooding on the Ohio River delaying barge deliveries,” said Joe Craft, chairman, president, and CEO, ALRP. “Rail and port logistics were disrupted by the Baltimore bridge incident, which as time progressed impacted shipments from our Appalachia rail operations. These delays, combined with lower export sales, lifted our inventories higher by 800,000 tons quarter-to-quarter.”
ALRP’s well-contracted order book continued to provide stability for its business, delivering improvements in coal sales pricing per ton compared to the previous quarter and the same period last year, Craft explained.
ALRP reported decreased demand for Hamilton County coal in the Illinois Basin (ILB). The company said the slope into the No. 9 seam at the new Henderson County mine was completed earlier this month. Earnings were also impacted by longwall moves at the Tunnel Ridge and Mettiki mines. Challenging mining conditions at all three Appalachian operations, resulted in lowered recoveries, equipment availability and increased costs related to roof control and maintenance.
Citing soft prices for ILB coal, Craft said ALRP has decided to slow production for the second half of the year. The company has adjusted its 2024 guidance downward. “We now expect to sell approximately 34 million tons in 2024, or 2.6% below the mid-point of our original guidance for the year,” Craft said. “Due to the increased summer burn, we now expect more than half of our uncontracted tonnage position will be sold in the domestic market.”
