Warrior Met Coal Inc. reported in a July 31 earnings release that the company succeeded in taking advantage of a favorable pricing environment for metallurgical coal during much of the second quarter.
Warrior reported second-quarter net income of $125.5 million, or $2.43 per diluted share, compared to net income of $91.3 million, or $1.72 per diluted share, in the second quarter of 2018. The company reported cash flows of $231.4 million in the recent quarter compared to $132.5 million in the year-ago period.
"The market for Warrior's high quality met coal remained strong in the second quarter, helping us to achieve record-high sales volume and free cash flow, despite softening demand for steel in Europe," Warrior CEO Walt Scheller said. "We are pleased to have maintained our high production volume and completed one longwall move during the quarter, enabling us to increase our full-year sales and production guidance."
The coal producer now projects between 7.5 million and 7.9 million tons of coal sales for the year at a cash cost of sales of between $89 and $95 per ton.
Warrior reported 2.2 million tons of metallurgical coal mined in the second quarter, 13.8% higher than the same period a year ago. Recent quarterly sales volumes were also 2.2 million tons, an 18.8% increase over the amount sold in the second quarter a year ago.
Revenues totaled $397.6 million for the second quarter of 2019, including $387.4 million in mining revenues. Those revenues include metallurgical coal sales priced at an average net selling price of $172.96 per short ton, net of demurrage and other charges.
Warrior's total available liquidity as of the end of the quarter stood at $235.4 million.