For the first half of 2012, higher sales volumes from the River View and Tunnel Ridge mines, as well as the acquisition of the Onton mine, more than offset lower sales into the export markets driving total sales volumes to a record 16.5 million tons, an increase of 6.8% compared to the 2011 period. Average coal sales price has also increased to a record $57.19 in the 2012 period, rising $2.08 per ton sold compared to the 2011 period.
On the strength of record revenues, ARLP also reported record EBITDA of $155.5 million in the 2012 quarter, an increase of 6% compared to the 2011 quarter. Compared to the 2011 period, however, EBITDA year-to-date fell slightly to $287 million due to the past through of losses related to ARLP's investment in the White Oak development project and the impact on margins from lower export sales in the 2012 period I mentioned a moment ago.
As anticipated, higher DD&A related to the start of longwall production at Tunnel Ridge and the pass through of White Oak losses contributed to lower net income in the 2012 quarter, which declined 2.8% compared to the 2011 quarter.
For the 2012 period, these factors, along with reduced export sales volumes and revenue, combined to drive net income lower by 7.8% compared to the 2011 period.Turning now to cost. ARLP's total segment adjusted EBITDA expense increased to $40.23 per ton sold in the 2012 quarter. Costs in the Illinois Basin were impacted the most by lower coal recoveries and difficult mining conditions at Dotiki, as this mine continued its transition into the West Kentucky No. 13 coal seam, and in addition, the acquisition of the Onton No. 9 mine. Read the rest of this transcript for free on seekingalpha.com
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