NRP reports third quarter results
HOUSTON -- Natural Resource Partners L.P. Monday reported revenues of $94.2 million and net income per unit of $0.48 for the third quarter 2012.
"In spite of a weak coal market, compared to the second quarter 2012, production from NRP's lessees increased in the third quarter by 11 percent and coal royalty revenues by 12 percent, as we exceeded our expectations," said Nick Carter, president and chief operating officer.
Revenues for the third quarter were up 4 percent from the second quarter, driven by an increase in coal production, according to a news release.
Net income to the limited partners for the third quarter was $51.0 million, compared to $48.9 million for the second quarter. Distributable cash flow decreased $5.6 million, or 8 percent, to $65.1 million mainly due to working capital changes, the news release said.
NRP does not anticipate a quick recovery of the metallurgical and thermal coal markets, Carter said in the release, but expects that "metallurgical coal demand will increase slowly over the next 12 months as steel production grows globally and restocking occurs."
"Additionally we expect that 2013 will be a hard year for thermal coal producers in Central Appalachia where current large stockpiles will need to be reduced," Carter said. "And the situation is further exacerbated by a large number of rollover contracts for deferred coal deliveries that resulted from the weak market in 2012."
NRP, which owns and manages energy reserves, has its operations headquarters in Huntington.