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Natural Resource's (NRP) Q3 Earnings Miss, Revenues Beat

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Natural Resource Partners LP (NRP - Free Report) reported third-quarter 2017 adjusted earnings of 59 cents per unit, missing the Zacks Consensus Estimate of 92 cents by 35.9%.

Total Revenues

In the quarter under review, Natural Resource Partners’ total revenues of $93.3 million surpassed the Zacks Consensus Estimate of $90 million by 3.7%. However, revenues were down from the year-ago figure of $97.9 million by 4.7%.

Segment Details

Coal Royalty and Other segment’s revenues and other income (excluding gains on asset sales) in the third quarter increased 1.1% to $49.4 million from $48.9 million in the year-ago period.

Soda Ash segment’s revenues were nearly $9 million in the third quarter, down 15.9% from the year-ago period.

Construction Aggregates segment’s revenues in the third quarter were $34.7 million, up nearly 9.5% year-over-year.

Natural Resource Partners LP Price, Consensus and EPS Surprise
 

Natural Resource Partners LP Price, Consensus and EPS Surprise | Natural Resource Partners LP Quote

Highlights of the Release

In the third quarter, coal produced from the company’s leased asset amounted to 5.93 million tons, down19.9% from 7.4 million tons in the year-ago quarter. Despite an improvement in per ton coal royalty revenues in all regions, the drop in production volumes led to an year-over-year decline in coal royalty revenues.

Total operating expenses in the reported quarter were down 20.5% to $46.8 million from $58.9 million in the prior-year quarter.

Interest expenses dropped 10.7% to $20.1 million from $22.5 million in the year-ago quarter.

Financial Condition

Natural Resource Partners had cash and cash equivalents of $121.3 million as of Sep 30, 2017, up considerably from $40.4 million as of Dec 31, 2016.

The partnership continues to lower outstanding debt levels. Long-term debt was $762.4 million as of Sep 30, 2017, down from $987.4 million as of Dec 31, 2016.

In the first nine months of 2017, cash from operating activities was $81.4 million, up 9.1% from $74.6 million in the prior-year period.

Zacks Rank

Natural Resource Partners currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of the Peers

Other operators in the Zacks Coal industry like Cloud Peak Energy (CLD - Free Report) , SunCoke Energy Partners, L.P. (SXCP - Free Report) and SunCoke Energy (SXC - Free Report) surpassed their respective Zacks Consensus Estimate in third-quarter earnings.

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