Teco Energy cuts coal sale forecasts
74 times viewed. Thursday, 19 Jan 2012It is reported that Utility company Teco Energy Inc lowered its coal sales forecasts for 2012 in the face of weaker demand and declining coal prices.

The company said that a mild winter, low natural gas prices and slow economic growth have reduced demand for coal over the past four months, dragging down coal prices and making it less profitable to sell.

Mr John Ramil CEO said in a statement that "At this time rather than sell coal at current prices or build inventory, Teco Coal is scaling back production immediately and lowering its 2012 sales projections."

According to a spokeswoman Teco Energy now expects to sell between 7 million and 7.3 million tons of coal at an average price of about USD 96 a ton. The company originally expected to sell roughly 8.25 million tons of coal, although it did not forecast average selling prices.