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Warrior Met Coal shares 2Q18 results

Published by
World Coal,


Leading US-based producer and exporter of metallurgical coal Warrior Met Coal, Inc. (Warrior) has announced results for the second quarter ended 30 June 2018.

Warrior reported a net income of US$91.3 million in 2Q18, or US$1.72 per diluted share, compared to a net income of US$129.9 million, or US$2.46 per diluted share the second quarter 2017. Excluding one-time transactions and other expenses and incremental non-cash stock compensation expense, adjusted earnings per share for the second quarter 2018 were US$1.81 per diluted share. The company reported Adjusted EBITDA of US$128.8 million for the second quarter 2018 compared to Adjusted EBITDA of US$188.5 million for the second quarter of 2017.

Year-to-date, Warrior reported net income of US$270.0 million, or US$5.10 per diluted share, compared to net income of US$238.2 million, or US$4.52 per diluted share, in the same period of 2017. Excluding one-time transaction and other expenses and incremental non-cash stock compensation expense, adjusted earnings per share year-to-date were US$5.24 per diluted share compared to the same period in 2017 of US$4.73 per diluted share. Year-to-date Adjusted EBITDA was US$345.3 million compared to US$323.9 million in the same period of 2017.

CEO of Warrior, Walt Scheller, said: “The market for high quality premium met coal continued to be robust in the second quarter, though moderated somewhat from the exceptional strength we have seen over the past year,” commented.

“Given the strength of our financial and operating results in the first and second quarters, performance at our mines, ongoing global GDP growth, and strong demand for steel production, we are raising our guidance for the balance of the year. Warrior’s performance clearly demonstrates the unique value of our highly focused business strategy as a premium 'pure-play' met coal producer.”

Operating Results

The company produced 1.9 million short t of met coal in the second quarter of 2018, which was similar to the amount produced in the second quarter of 2017. According to Warrior, actual production volume was better than expected as the company entered the second quarter with a scheduled shut down for a week of maintenance at one of its mines. The company reportedly continues to make good progress toward its nameplate annual capacity of 8 million short t. Halfway through the year, the company produced and sold 4 million short t of met coal without any longwall moves.

Total revenues were US$322.6 million for the second quarter of 2018, including US$315.0 million in mining revenues, which consisted of met coal sales of 1.9 million short t at an average net selling price of US$167 per short t, net of demurrage and other charges. Average net selling price declined 7.8% compared to the second quarter of 2017, reflecting the higher met coal price environment last year due to Cyclone Debbie in Australia.

For full results: https://www.businesswire.com/news/home/20180801006051/en

Read the article online at: https://www.worldcoal.com/coal/02082018/warrior-met-coal-shares-2q18-results/

 

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