Shipments by segment
Shipments from the Illinois Basin came in at 6.1 million tons, which was 10.7% higher than 5.5 million tons in 2Q16. The increase was primarily due to higher coal sales volume from its Hamilton, Gibson South, and River View mines. However, it was offset partially by lower sales from the Dotiki and Warrior mines in 2Q17 compared to 2Q16 and partially by the closure of the Pattiki mine in 4Q16. The 2Q17 shipments fell 8.5% on a QoQ (quarter-over-quarter) basis.
The Appalachian region saw a 3.5% fall in shipments on a YoY (year-over-year) basis, falling from 2.5 million tons in 2Q16 to 2.4 million tons in 2Q17. Even though its MC Mining increased in volume, it was offset by reduced recoveries at the Tunnel Ridge mine. The shipments fell 19.2% on a QoQ (quarter-over-quarter) basis.
Alliance Resource Partners’ overall shipments
Alliance Resource Partners reported overall shipments for 2Q17 at 8.5 million tons, which was 6.3% higher than 8.0 million tons for the same period in 2016. However, overall shipments fell nearly 11.9% on a QoQ basis from 9.6 million tons in 1Q17. The 6.3% YoY rise in total shipments is primarily due to increased coal sales and production volumes from the Hamilton, Gibson South, and River View mines of the Illinois Basin region.
On a QoQ basis, reduced shipments to certain customers due to force majeure events, shipment deferrals, and lower export shipments caused the 8.5% fall in shipments in the Illinois Basin and the 19.2% fall in the Appalachian region.
Next, let’s look at ARLP’s coal pricing and revenue from its operating segments in 2Q17.