Alpha Metallurgical Resources says Q3 results reflect recent market softness

Alpha Metallurgical Resources (NYSE:AMR) -1.1% in Tuesday’s trading after providing a Q3 update, saying results “reflect the market softness of the last few months,” with revenues and shipment volumes both lower than in Q1 and Q2.

“With a significant slowdown in spot activity during the quarter, we continued to fulfill our existing contracts, which resulted in 4.1M tons shipped in Q3, and we believe we will end the year toward the higher end of our previously issued shipment guidance range,” Alpha (AMR) CEO Andy Eidson said.

The company guided for Q3 met segment coal revenues of $669.8M, and $550.7M when excluding freight and handling, with 4.1M tons sold; Q3 net realized pricing for the met segment was $132.76/ton.

At the end of Q3, Alpha (AMR) had total liquidity of $507M, including $484.6M in cash and cash equivalents and $97.5M of unused availability under the ABL, with total liquidity rising by $150.3M from Q2 largely driven by working capital movement due to lower accounts receivable and inventory balances.