TERRE HAUTE, Ind. (Inside INdiana Business) – Terre Haute-based Hallador Energy Co. (Nasdaq: HNRG) is reporting a net loss of $3.7 million in the first quarter, compared to net income of $7 million during the same period last year. Chief Executive Officer Brent Bilsland says delayed shipments and costs related to the permanent closure of the Carlisle Mine contributed to increased operating costs.
“Thermal export prices collapsed in the 2nd half of 2019, pressuring domestic steam coal pricing. Natural gas prices marked their lowest levels in 21 years during Q1 2020. Additionally, most of the United States and developed world closed and sheltered in place for 8-10 weeks during part of the 1st and 2nd quarter. The culmination of these extreme events led us to take proactive steps to plan for the future of Hallador’s customers, investors and employees. Our actions are designed to increase our financial abilities so that we can ensure consistency at a time when the world is experiencing great volatility,” said Bilsland.
In anticipation of shipment delays and potential production interruptions, Hallador says it has taken steps to offset the impacts, including receiving a $10 million loan through the federal Paycheck Protection Program. The company says the funding will be used to pay two months of payroll and other covered expenses.
Hallador expects a portion of the loan to be forgiven by maintaining current staffing levels through June 30 as part of the CARES Act.
You can connect to the full earnings report by clicking here.