Galax, Virginia (Platts)--31Jan2013/149 pm EST/1849 GMT

Despite weak coal markets last year, eastern US coal producer Consol Energy said Thursday that it developed six new thermal domestic and export customers and made coal deliveries to new facilities in China, India and the Dominican Republic.

The Pittsburgh-based producer of US Appalachian coal and natural gas reported total 2012 sales volume of 56.5 million short tons for $3.79 billion of coal sales revenue. Average annual price was $67.11/st.

Consol sold 3.7 million st of low-volatility metallurgical coal at an average price of $140.11/st and 3.6 million of high-vol met coal at an average price of $63.76/st.

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Consol exported 10.3 million st at an average price of $76.70/st, the company said. About 91% of the thermal coal tons were delivered within the US, Consol added.

"The key driver was the much-improved costs in our coal segment," outgoing CFO Bill Lyons said Thursday in a earnings conference call. Lyons is being succeeded by current Vice President of Finance David Khani, Consol Chairman and CEO Brett Harvey said during the earnings call.

The company set 2013 coal sales volumes guidance at 56.3 million st -- 14 million st in the first quarter -- with 3.9 million st of that low-vol met coal, and with 1.5 million st firmly priced at $115.63/st. Consol set high-vol met coal sales guidance at 1.8 million st, with most of it firmly priced at $62.95/st.

Consol's guidance for 2013 thermal coal sales is set at 50.1 million st, with most of that firmly priced at $59.06/st.

Consol expects that 5 million-10 million st of its coal, across all sales categories, will be exported in 2013.

Consol Q1 guidance target is low-vol met sales of 900,000 st at an average price of $121.48/st, high-vol met sales of 1.1 million st at $64.24/st and 11.9 million st of thermal coal sales at $58.76/st.

In the most-recent quarter, Consol post net income of $150 million, or 65 cents per diluted share, compared with $196 million, or 85 cents/share, from the year-earlier quarter. Earnings for the quarter included a pretax charge of $13 million for a voluntary severance program for certain active salaried corporate and operation support employees, and a pretax gain of $90 million on asset sales. During 2012, Consol sold non-revenue producing assets for $350 million, including coal reserves and resources from Central Appalachia, the Powder River Basin in the western US and western Canada.

Consol executives said during the conference call that the company expects to continue to sell assets in 2013, but not at "fire sale" prices. Harvey said the 2012 sales involved "assets that people wanted [and] were willing to pay a good price."

--Steve Hooks, steve_hooks@platts.com
--Edited by Valarie Jackson, valarie_jackson@platts.com

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