BANGALORE, Might 6 - Coal miner Alpha Natural Resources Inc (ANR.N) reported a 61 percent rise in first-quarter profit, defeating market price quotes, as higher coal costs and lower prices offset sagging need, sending out shares of the firm as high as 22 percent.

Though the administration on the conference call showed the second quarter might not be just as good as the very first, the equity market is replying to a truly strong quarter, analyst Pearce Hammond of Simmons & Co International said.

Coal markets are going through a tough spell at the moment, but specific coal business have actually signed steam and fulfilled coal agreements at much higher costs in the past, than would have been feasible today, he said.

For the quarter, Alpha posted an earnings of $41 million, or 58 cents a share, compared to $25.5 million, or 39 cents, a year earlier.

Alpha Natural Q1 profit tops Road sight; shares gain from coal sales increased partially to $424.4 million, regardless of a 1.3 million bunch decrease in sales quantities, the company said in a statement.

Experts typically expected earnings of 48 cents a share, prior to products, on revenue of $515.5 million, according to Reuters Estimates.

"The beat was driven by superb price control and higher price awareness for thermal coal. Met coal deliveries additionally held up moderately well, coming in at over 2 million loads in the very first quarter versus 2.4 million loads last quarter," expert Jeremy Sussman from Natixis Bleichroeder stated.

This was the area (satisfied coal shipments) that most customers were worried concerning, he included.

Alpha's ordinary margin per heap rose 81 percent to $23.48, while coal sales prices increased 25 percent.

Other coal firms such as Consol Power Inc (CNX.N), Patriot Coal Corp (PCX.N) and also James River Coal Co (JRCC.O) additionally saw their first-quarter increased by a jump in rates, helping balance out the decrease in deliveries.

Alpha adjusted production to bring raw coal result and also stocks in accordance with its sales dedications, and used its mines that produce higher variety of loads at lower device manufacturing expenses, Chief Executive Michael Quillen claimed in a statement.

"Offered a continued flow of mainly adverse macro economic projections, Alpha thinks the volume fad for the equilibrium of 2009 is more likely to be down than up," the business said.

It anticipates 2009 sales quantities to be about 22 million loads, down from its prior projection of 24 million loads.

Alpha and also its subsidiaries presently operate 50 mines supplying 10 coal prep work and blending plants, in Virginia, West Virginia, Kentucky, and Pennsylvania.

"We see this quarter's beat as a wonderful favorable for the supply. Given that fulfilled coal rates have not been wrapped up yet for 2009, we are not amazed about the lack of financial guidance." analyst Sussman added.

Shares of Alpha Natural rose to $30.85 Wednesday morning, but later pared a few of its gains to trade up 20 percent at $30.31 in afternoon trade on the New York Supply Exchange.