Wider-than-Expected Loss at Oxford Resource - Analyst Blog
March 04 2014 - 2:00PM
Zacks
Coal producer Oxford Resource Partners, LP’s
(OXF) operating loss of 48 cents per unit in the fourth quarter of
2013 was wider than the Zacks Consensus Estimate of a loss of 41
cents. In the year-ago quarter the company reported loss of 37
cents.
GAAP loss in the reported quarter was 33 cents per unit compared to
a loss of 29 cents in the year ago quarter. The difference between
GAAP and operating loss in fourth quarter was due to impact of
one-time restructuring and asset impairment charges and gain from
the changes in the fair value of warrants.
Oxford Resource Partners’ operating loss of $1.22 per unit in 2013
was wider than the Zacks Consensus Estimate of a loss of $1.18. In
2012, the operating earnings of the company were 89 cents.
Revenue
Oxford Resource Partners’ total revenue of $82.3 million in the
fourth quarter was down 4.8% from $86.5 million in the year-ago
period.
Full-year 2013 revenues came in at $346.8 million, missing year-ago
revenues of $373.5 billion by 7.2%.
The decline was primary due to lower sales volume from the Illinois
Basin operations.
Highlights of the Release
During the year, Oxford Resource Partners increased its coal
reserves by acquiring 6.2 million tons of proven and probable coal
reserves in Northern Appalachia. In addition, the partnership also
received necessary permits to mine 6.8 million tons of proven and
probable coal reserves in Northern Appalachia.
Cash coal sales per ton during the year were $50.92 up 2.7% from
the year-ago level. However, 3.5% increase in the cash cost per ton
to $43.99 in 2013, offset the benefits of increase in the selling
price.
Interest expenses were $21.1 million versus $11.5 million in 2012.
The increase in expenses was primarily due to expense incurred to
service higher debts.
Financial Update
Cash and cash equivalents as of Dec 31, 2013 were $3.1 million
versus $3.9 million as of Dec 31, 2012.
Long-term debt as of Dec 31, 2013 was $155.4 million versus $41.6
million as of Dec 31, 2012.
Guidance
Oxford Resource Partners expects to produce between 5.5 million
tons and 5.9 million tons and sell between 5.6 million tons and 6.0
million tons of thermal coal in 2014.
The partnership expects average selling price to be in the range of
$51.50 to $53.50 per ton, exceeding the selling price of $51.09 per
ton in the fourth quarter of 2013.
The partnership expects its capital expenditure in 2014 be in the
range of $17 million to $21 million.
Other Company Releases
Arch Coal Inc. (ACI) reported fourth-quarter 2013
pro forma loss of 45 cents per share, wider than the Zacks
Consensus Estimate of a loss of 36 cents.
Walter Energy Inc.’s (WLT) operating loss per
share of 55 cents per share in the fourth quarter of 2013 was
narrower than the Zacks Consensus Estimate of a loss of 79
cents.
Alpha Natural Resources (ANR) reported a loss of
52 cents per share for the fourth quarter of 2013, narrower than
the Zacks Consensus Estimate of a loss of 61 cents.
Zacks Rank
Oxford Resource Partners, L.P. currently has a Zacks Rank #3
(Hold).
ARCH COAL INC (ACI): Free Stock Analysis Report
ALPHA NATRL RES (ANR): Free Stock Analysis Report
OXFORD RES PTNR (OXF): Free Stock Analysis Report
WALTER ENERGY (WLT): Free Stock Analysis Report
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