Cloud Peak Energy posts $2.1 million loss

2014-07-31T15:09:00Z 2014-07-31T19:32:03Z Cloud Peak Energy posts $2.1 million lossThe Associated Press The Associated Press
July 31, 2014 3:09 pm  • 

GILLETTE, Wyo.  — Cloud Peak Energy, which operates only in the Powder River Basin, has posted a $2.1 million loss in the second quarter of 2014, compared to a $4.1 million gain for the same period last year.

Cloud Peak, like other mining operations in the basin, has been affected by rail service disruptions.

That's what Cloud Peak president and CEO Colin Marshall said during an earnings conference call this week. He said that some 20.6 million tons of coal were affected by rail delays.

Chief financial officer Michael Barrett said that Cloud Peak reduced its costs per ton of coal, compared to 2013, with higher sales prices and by servicing equipment in-house rather than contracting the work.

Cloud Peak's cost per ton was $10.48 for the past three months, down from $10.81 last year. It sold its coal at $13.05 per ton, compared to $13.08 per ton last year.

Cloud Peak continues to eye Asian markets as a key growth area, even though shipments dropped slightly over the year, from 1.4 million tons to 1.2 million tons. The company blamed the decline on rail constraints and lower international prices due to new supplies from Indonesia and Australia.

Cloud Peak believes that expanding Asian markets will overcome that increased supply, Marshall said.

The company continues to develop relationships with utilities in Japan, Taiwan and South Korea, he said.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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