By Will Owen
May 22, 2023 - Alliance Resource Partners, L.P. has reported substantial increases to financial and operating results for the quarter ended 31 March 2023, compared to the quarter ended 31 March 2022.
Total revenues in the 2023 Quarter increased 43% to US$662.9 million compared to US$463.4 million for the 2022 Quarter, driven primarily by significantly higher coal sales price per tonne, which rose by 43.6%. Increased revenues and lower income tax expense, partially offset by higher total operating expenses, led to net income for the 2023 Quarter of US$191.2 million, or US$1.45 per basic and diluted limited partner unit, compared to US$38.1 million, or US$0.28 per basic and diluted limited partner unit, for the 2022 Quarter. EBITDA also increased 75.2% in the 2023 Quarter to US$270.9 million compared to US$154.6 million in the 2022 Quarter.
Compared to the company’s record setting quarter ended 31 December 2022, total revenues decreased by 5.9% primarily as a result of lower coal sales volumes, due to extraordinarily strong shipments during the Sequential Quarter and reduced oil & gas royalties revenues due to lower price realisations. Total operating expenses decreased 6.0% to US$455.6 million, due primarily to lower coal sales volumes. Lower revenues, partially offset by decreased total operating expenses, reduced net income to US$191.2 million compared to US$216.9 million in the Sequential Quarter. EBITDA also decreased by 8.8% in the 2023 Quarter to US$270.9 million compared to US$296.9 million in the Sequential Quarter.
Joseph W. Craft III, Chairman, President and Chief Executive Officer, CEO, comments:
“ARLP delivered impressive results during the first quarter of 2023. Relying upon a solid coal sales contract book, we were able to achieve significantly higher realised pricing per tonne sold relative to the prior year. Additionally, our coal operations were able to keep our operating costs per tonne in-line with the Sequential Quarter despite a difficult inflationary environment and unexpected operating challenges in the 2023 Quarter.
“We remain optimistic our 2023 financial results will be at record levels. Even though recent mild weather and lower natural gas prices have softened the near-term domestic utility markets, we expect export demand to be sufficient to allow us to increase sales compared to last year.”