Hallador Energy swings to quarterly profit
Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe Now
Terre Haute-based Hallador Energy Co. is reporting second-quarter net income of $8.2 million, compared to a loss of $13.2 million during the same period last year.
The results come as the company continues to work toward securing a power-purchase agreement after discussions with a potential data center developer fell through.
Hallador also reported quarterly revenue of nearly $103 million, up 10% year over year. CEO Brent Bilsland said the company delivered a strong second quarter.
“Our performance reflects the operational resilience of our platform, particularly as we navigated seasonal spring softness in the energy market and a scheduled outage at one of our generating units,” Bilsland said in a news release. “The strength of our remaining unit and higher-than-expected market pricing in late June helped offset those headwinds, while our coal operations benefited from improved cost efficiency and stronger recovery rates.”
Bilsland said the efforts during the quarter resulted in higher inventory levels, positioning the company for “an active second half” of the year.
In May, Hallador announced that it was scrapping plans for a data center near the company’s Merom Generating Station in Sullivan County after an undisclosed developer pulled out of the deal.
However, Bilsland said the company is seeing “increased momentum” in its search for a long-term power purchase agreement.
“Since concluding exclusive discussions with a major data center developer in May, we’ve engaged with a broader slate of potential partners, including utilities whose proposals offer compelling scale and execution benefits,” he said. “The current market backdrop, characterized by ramping demand for accredited capacity and resilient baseload power, presents a significantly more attractive landscape.”
A potential timeline for a new agreement was not given.
You can view the full earnings report by clicking here.