"International Coal Group (NYSE:ICO) reported Q4 and full year 2010 earnings results, posting a net income of $9.6 million, or $0.05 a share compared to a net loss of $11.3 million, or $0.07 a share, in the same quarter of 2009. Adjusted earnings for 2010 was $211.1 million.
ICO's Q4 net income included a $400,000 pre-tax loss on extinguishment of debt related to repurchases of 9% of senior convertible notes.
The company's metallurgical shipments were up 64% in the quarter from a year ago, despite recent flooding in Australia which reduced global coal production levels. Coal sales revenues increased to $243.4 million for the quarter compared to $231.3 million from 2009.
Ben Hatfield, President and CEO, commented on earnings, "We were pleased to deliver solid fourth quarter results despite isolated operational challenges and late-quarter shipment delays. Although our Sentinel mine had several unplanned section moves that reduced metallurgical shipments, we were able to maintain attractive margins. Additionally, weather-related disruptions to rail service delayed approximately 100,000 tons of fourth quarter shipments, impacting Adjusted EBITDA by nearly $5.0 million."
Hatfield continued, "Current coal prices have moved up sharply for both metallurgical and thermal coal. Metallurgical prices are being driven by the severe flooding in Australia, which has idled substantial production there, and an improving global economic climate. Thermal markets have also shown marked improvement due to rebounding export demand and colder weather, although US utilities are delaying significant spot purchases in order to draw down stockpiles. We believe US domestic prices are poised for rapid improvement during the latter half of 2011."