CONSOL Energy Expects Q3 Loss Due to Marketing and Operational Issues
CONSOL Energy (NYSE: CNX) is providing an operational and financial update for the quarter ended September 30, 2012.
The company expects to report a net loss for the quarter, due to a combination of marketing and operational issues. "While precise figures are not yet available, it is clear that the company's previously announced planned and unplanned mine idlings took their toll on third quarter earnings," commented William J. Lyons, chief financial officer. "Fortunately, CONSOL Energy has the balance sheet to maintain market discipline. Even at the end of the quarter, our liquidity remained strong. At September 30, 2012, we had cash of $231 million, no short term debt, and $2.3 billion of capacity under our credit facilities."
During the last several months, CONSOL announced a planned two-week idling of Blacksville Mine and a one-week idling of Robinson Run Mine, due to weak thermal coal markets. The Fola Mine was also idled. Subsequently, the company suffered the failure of two new conveyor belts at the Bailey Preparation Plant, which impacted production at the Enlow Fork and Bailey mines. Then, in early September, the company announced the idling