TECO Energy, Inc reported second quarter net income of USD 73.1 million, or USD 0.34 per share as compared with USD 77.5 million or USD 0.36 per share, in the second quarter of 2011.
“Our results this quarter reflect better growth at our Florida utilities, and the current challenging coal markets. Our Florida utilities are benefiting from continued improvement in the state and local economies with the strongest customer growth in more than three years, but weather has not been our friend this year.”
TECO Coal achieved second quarter net income of USD 12.2 million on sales of 1.6 million tons, compared with USD 15.8 million on sales of 2.1 million tons in the same period in 2011. Lower sales volumes in the 2012 quarter reflect the current coal market conditions and the timing of specialty coal shipments.
In 2012, second quarter results reflect an average net per-ton selling price, excluding transportation allowances, of slightly more than USD 94 per ton, almost 6% higher than in 2011, but below prior guidance due to a sales mix that was more heavily weighted to steam coal in the quarter due to the timing of metallurgical coal shipments. In the second quarter of 2012, the all-in total per-ton cost of production increased to slightly more than USD 84 per ton, which is below the middle of the cost guidance range previously provided. Compared with the 2011 period, the increased cost of production in the second quarter was driven by spreading fixed costs over fewer tons and higher surface mining costs due to increased diesel fuel usage as a result of trucking coal and overburden further due to the lack of new surface-mine permits. These factors were partially offset by reduced overtime and lower contract miner costs in 2012. TECO Coal's effective income tax rate in the second quarter of 2012 was 25%, compared with 24% in the 2011 period.
TECO Coal recorded year to date net income of USD 22.0 million on sales of 3.0 million tons in 2012, compared with USD 24.0 million on sales of 4.1 million tons in the 2011 period. Lower sales volumes in the 2012 year-to-date period reflect the current coal market conditions. The 2012 year-to-date average net per-ton selling price was USD 95 per ton, compared with USD 85 per ton in 2011, and the all-in total per-ton cost of production was almost USD 86 per ton compared with USD 78 per ton in 2011. In addition to the same cost factors as the second quarter, the 2012 year-to-date cost of production reflects costs incurred in the first quarter associated with idling a section of a mine and other costs associated with reducing production. TECO Coal's effective income tax rate was 25%, compared with 22% in the 2011 year to date period.
Source - TECO Energy
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