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Massey Energy reports Q3 loss

Oilfield Technology,

In spite of increased coal sales Massey Energy posted a loss on Q3 earnings.

Massey has placed the blame for the losses on the mining regulatory authorities. In April, an explosion at Massey’s Upper Big Branch coal mine in West Virginia left 29 workers dead, since then the company has come under close scrutiny from the mining health and safety regulator.

Massey’s chief executive, Don L. Blankenship, took the opportunity to berate the Mine Safety and Health Administration, “As we have noted earlier, increasingly stringent enforcement actions by M.S.H.A. resulted in lost shifts and significant loss of productivity.”

The company’s Q3 loss amounted to US$ 41.4 million, and has led to speculation that the company could be a target for a takeover by a rival in its weakened state. As a result of rumours that the company’s board could be considering selling the company, the company’s share price has increased in the last few weeks.

It has been noted that a sale of the company may be in its best interests, as new management would be able to mend the rift between Massey and the Mine Safety and Health Administration, and hopefully raise the company back into profit, which is in the shareholders’ best interests.

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