Foresight Energy Swings to Loss as Revenue Plunges
May 11, 2016 - Foresight Energy reported a larger quarterly loss as it continues to struggle with sagging coal demand and a fire that shuttered one of its Illinois mines.
The St. Louis-based coal miner said it lost $41.7 million in the first quarter, or about 32 cents per common unit. That compared to profit of $42.3 million, or 33 cents per common unit, in the same quarter last year.
Revenue was down to $166.1 million in the quarter that ended March 31 from the $238.9 million it reported in the first quarter of 2015.
Foresight, which operates longwall mines in Illinois, is trying to renegotiate its debt with lenders in an effort to avoid bankruptcy. It announced a tentative plan last month to restructure its debt but last week extended the deadline to finalize the agreement to May 17.
"Our industry continues to be faced with extreme challenges resulting from competition from low cost natural gas, government regulations impacting electric utilities and a reduction in demand for power domestically," Robert Moore, Foresight's president and CEO, said in a statement.