Coal producer Rhino Resource Partners LP on March 14 reported a net loss of $18.7 million, or $1.45 per unit, in the fourth quarter, compared with a loss of $3.8 million, or 41 cents per unit, in the prior-year period.
Coal sales generated $55.4 million of the total $55.8 million revenue for the quarter. In the same period last year, Rhino's revenue totaled $44.4 million, with coal representing $43.8 million of that.
The partnership reported sales of 1.1 million tons of coal in the most recent quarter, compared with 890,000 tons a year earlier. The company attributed the increase to more sales from Central Appalachia.
For the full year, GAAP net loss was $18.8 million, or $1.75 per unit, compared with a loss of $130.8 million, or $16.75 per unit, in the year-ago quarter.
Revenue for the full year totaled $218.7 million, while year-ago revenue stood at $155.4 million. Rhino reported sales of 4.1 million tons of coal during the year, compared with 3.1 million tons a year earlier.
"Our sales volume increased by 18% year over year or approximately one million tons in 2017 when compared to 2016," said Rick Boone, president and CEO of Rhino's general partner. The partnership now has contracted sales in place for 2018 that will exceed the levels it reached in 2017, Boone added. "With significant sales in place for 2018 and our constant focus on cost containment, we believe Rhino will continue to provide strong financial results in 2018."
The partnership recognized a gain of $3.2 million after it divested its Sands Hill Mining LLC entity to a third party. Rhino said it will not pay a cash distribution for common units in the current quarter and no distributions will be paid for the quarter ended Dec. 31, 2017.
