Arch Coal Bullish on Trump Regulatory Promises
Arch Coal Inc, which emerged from bankruptcy in October, said U.S. President Donald Trump's administration should prove to be positive for its coal businesses.
The coal miner also said revenue rose 4.6 percent to $575.7 million in the fourth quarter ended Dec. 31 from the third, helped by higher prices for metallurgical coal, which is used in steel making.
"Arch anticipates that the new Administration will constructively address the regulatory burden that has pressured the industry in recent years, resulting in stabilization in domestic thermal coal demand in the intermediate term," the company said on Wednesday.
Demand for thermal coal, used for power generation, has sharply declined in recent years, hurt by cheap prices for competing fuel natural gas and environment-friendly regulations by former President Barack Obama's administration.
The battered U.S. coal industry has rejoiced in recent weeks as President Trump has vowed to support more coal mining.
Demand for metallurgical coal recovered last year mainly after top consumer China clamped down on local production, as part of a campaign against pollution.
Arch Coal shipped 1.7 million tons of metallurgical coal at an average realized price of $75.36 per ton in the latest quarter, a more-than 30 percent rise from the third quarter.
The company said it also expects the new administration to focus on "maintaining a competitive domestic steel sector."
Arch Coal reported a net income of $33.4 million, or $1.31 per share, in the fourth quarter, compared with a loss of $51.4 million, or $2.41 per share, in the third quarter. (Reporting by Arathy S Nair
