Revenue from the company’s coal mining operations in the US came in at about $168.9 million compared to $132.0 million in 3Q15 and $151.4 million in 2Q16. Revenue from the company’s Canadian coal mining segment fell both on a year-over-year and quarter-over-quarter basis in 3Q16. WLB reported its Canadian coal mining segment’s revenue at $96.5 million in 3Q16 compared to $107.8 million in 3Q15 and $109.1 million in 2Q16. In contrast, the company’s WMLP segment witnessed a marginal decline in revenue from $94.8 million in 3Q15 to $90.3 million in 3Q16.
Revenue from the company’s Power Generation segment marginally fell to about $21.6 million from $22.1 million in 3Q15. However, revenue was almost flat on a quarter-over-quarter basis.
Westmoreland Coal’s overall revenue
For 3Q16, Westmoreland Coal reported its consolidated revenue at about $371 million as compared to $350 million in 3Q15. Moreover, the reported revenue is about 4% higher when compared to the company’s 2Q16 revenue of $356 million.
Why the increase?
Westmoreland Coal’s average revenue realized per ton of coal sold came in at $25.6 in 3Q16 compared to $24.2 during the same period in 2015. The increase in overall shipments and higher average price realized per ton sold resulted in a higher consolidated revenue for the company. Notably, WLB’s January 2016 San Juan acquisition added about $51.7 million revenue in 3Q16.
However, low natural gas prices, subsidized renewable energy generation, mild weather conditions, and stringent environmental regulations continue to impact the revenues of pure-play coal (KOL) producers like Cloud Peak Energy, Peabody Energy (BTUUQ), and Alpha Natural Resources (ANRZQ).
Next, let’s look at the operating performance of Westmoreland Coal in 3Q16.