Natural Resource Partners 1Q profit leaps, beats views

Natural Resource Partners LP, which owns and manages coal properties, said Thursday its first-quarter earnings soared 45 percent on higher coal prices, growing production and an expanded product mix.

The results beat Wall Street's expectations. Shares rose 70 cents, or 2 percent, to $34.69 in midday trading.

The company earned $25.8 million, or 40 cents per share, compared with $17.8 million, or 28 cents per share, in the year-ago period.

Revenue rose 28 percent to $64.1 million, from $50.2 million a year earlier.

Analysts were expecting a profit of 37 cents per share on revenue of $64.6 million, according to a poll by Thomson Financial.

Production increased 7 percent to 14.5 million tons in the quarter, led by the Illinois Basin and the Northern Powder River Basin stretching across parts of Wyoming and Montana.

Natural Resource Partners said the quarter was aided by an increase in metallurgical coal revenue. Metallurgical coal is used in steel production and is in high demand internationally. Prices for the commodity have more than tripled in the past year.

Also, the company said it derived a bigger chunk of its revenue from other sources, including coal processing and transportation fees and oil and gas royalties.