October 08, 2008

Natural Resource Partners Q1 revenue up by 28% YoY

Natural Resource Partners LP, which owns and manages coal properties, said Thursday its first-quarter earnings soared 45 percent on higher coal prices, growing production and an expanded product mix. Its revenue rose by 28% YoY to USD 64.1 million as compared to USD 50.2 million a year earlier.

Natural Resource Partners said that its production increased by 7% to 14.5 million tonnes in the quarter, led by the Illinois Basin and the Northern Powder River Basin stretching across parts of Wyoming and Montana.

Q1 result Highlights:

1. Distributable cash flow of USD 34.9 million up by 23% over Q1 of 2007
2. Record revenues of USD 64.1 million up by 28%
3. Record net income attributable to limited partners of USD 25.9 million up by 46%
5. Metallurgical coal accounted for 37% of Q1 of 2008 coal royalty revenues and 28% of production

Mr Nick Carter president & COO of Natural Resource said that "It is an exciting time to be in the coal business. Coal prices continue to improve month over month and since our royalty structure is based on top line sales price and not margin, we benefit proportionally as our lessees' sales prices increase. We believe that world economic indicators point toward higher global coal demand and a supply shortfall, which bodes well for the US coal industry and NRP."