Why WLB’s Revenue Growth Outperformed Its Peers in 3Q16



3Q16 revenues

The majority of coal mining companies witnessed a drop in their 3Q16 revenues due to lower demand for coal in both domestic and international markets when compared to 3Q15. However, Westmoreland Coal (WLB) was an exception.

Peabody Energy (BTUUQ) reported its 3Q16 revenues as ~$1.2 billion compared to ~$1.4 billion in 3Q15. Cloud Peak Energy’s (CLD) revenues fell from $302 million in 3Q15 to $217 million in 3Q16. Arch Coal’s (ARCH) revenue from coal sales came in at ~$550 million compared to $689 million in 3Q15.

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Alliance Resource Partners (ARLP) reported its 3Q16 revenues from coal sales at $552 million compared to $566 million in 3Q15. Unlike its peers, Westmoreland Coal’s (WLB) coal sales revenues marginally increased from $350 million in 3Q15 to $371 million in 3Q16. WLB’s Power segment revenues are not included in the comparison.

Revenue growth rate

Among major coal (KOL) mining companies, Cloud Peak Energy’s revenues fell the most on a YoY basis. A lower sales volume accompanied by a drop in realized price per ton sold dragged its revenue by nearly 28%.

CLD is followed by Arch Coal and Peabody Energy with respective falls of 20% and 15% in their 3Q16 revenues. Alliance Resource Partners reported a 2% drop in its 3Q16 revenues.

Westmoreland Coal’s revenues

For 3Q16, Westmoreland Coal’s (WLB) revenues from coal sales increased nearly 6% on a YoY basis. WLB witnessed the highest growth in realized coal price per ton sold when compared to its peers in 3Q16. The company’s San Juan acquisition in January 2016 helped to report higher shipments compared to the same period in 2015.

In the next part of this series, we’ll look at the cost performance of the major coal mining companies in 3Q16.


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