SINGAPORE Walter Energy Inc. is looking for ways to reduce costs after posting a second-quarter net loss of $34.5 million, which it attributed to lower metallurgical coal prices and sales volumes.
"In a difficult met coal pricing environment, we continue to pursue measures to reduce operating costs, selling, general and administrative expenses, and capital spending," chief executive officer Walter J. Scheller said in the statement Aug. 1.
Birmingham, Ala.-based Walter Energy sold 2.4 million tonnes of metallurgical coal during the quarter, down 14.1 percent from 2.8 million tonnes a year earlier. Sales prices averaged $150.41 per tonne, down 22.2 percent from $193.31 per tonne in the same comparison.
Walter Energy produced 2.9 million tonnes of metallurgical coal during the quarter, up 9.2 percent from 2.7 million tonnes seen in the second quarter of 2012.
The company said it expects to reach its full-year production target of around 11 million tonnes despite expectations of lower output in the third quarter due to a planned longwall move at its Alabama underground mines and its Wolverine Mine in Canada moving into a less favorable phase of its mining cycle.
A version of this article was first published in AMM sister publication Steel First.