Fording announced a distribution increase yesterday for its second quarter. Cash distributions have been raised to $2.50 per unit from Fording's first quarter cash distribution level of $0.50 per unit.
Increase Above Analyst's Forecasts
This increase was well above Canaccord Adams' expectation of $2.41 and a First Call concensus of $1.63 (estimates ranged from $0.48-2.41). Canaccord Adams is forecasting a distribution profile of $10.21 in 2008, $15.41 in 2009 and $12.53 in 2010. We expect peak quarterly distributions of $4.11 and $4.30 in Q4/09 and Q1/10, respectively.
Contract Prices Rise
In May, Fording announced that contract prices had been
settled for about 90% of its anticipated coal sales for the 2008 coal year (April 2008 - March 2009), at an average price of about