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


Natural Resource Partners LP NRP 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, SunCoke Energy Partners, L.P. SXCP and SunCoke Energy SXC surpassed their respective Zacks Consensus Estimate in third-quarter earnings.

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