U.S. coal operator Foresight Energy reported quarterly coal sales revenues of $99.1 million on sales volumes of 3.2 million tons, compared to $267.3 million for the first quarter 2019, representing a decrease of $168.2 million, or 63%. The company reported a net income of $35.7 million, which included $85.1 million in gains on reorganization items associated with the March 2020 bankruptcy filing. Foresight mines produced 3.8 million tons during the quarter. Cost of coal produced was nearly $80 million for the first quarter 2020 compared to nearly $134 million for the first quarter 2019.
Foresight Energy said the weak overall coal sales realizations were primarily due to decreased pricing on export volumes, which were a function of market considerations as well as modified sales terms of its export contracts, whereby its mines are the delivery point of its export volumes in exchange for its customers bearing the responsibility and cost of transporting the coal to export facilities on the Gulf of Mexico.
Foresight Energy is a leading producer and marketer of thermal coal controlling nearly 2.1 billion tons of coal reserves in the Illinois Basin. Foresight Energy operates three longwall mining complexes with four longwall mining systems (Williamson (one longwall mining system), Sugar Camp (two longwall mining systems), and Hillsboro (one longwall mining system), which has
fully resumed longwall mining operations in March 2020), and the Sitran river terminal on the Ohio River. With the resumption of longwall mining at Hillsboro, Foresight Energy has idled continuous miner production at its