SunCoke Energy, Inc. (SXC) has reported its results for 3Q21, reflecting strong performance in its domestic coke and logistics segments.
- 3Q21 net income attributable to SXC was US$23 million, or US$0.27 per share; year-to-date net income attributable to SXC was US$30.7 million, or US$0.37 per share.
- Adjusted EBITDA for 3Q21 was US$73.9 million, representing record third quarter performance; year-to-date Adjusted EBITDA was US$212.5 million.
- Well positioned to modestly exceed the full year 2021 adjusted EBITDA guidance range.
“We are very pleased with the continued strong performance across all of our operating segments, which is the key driver of our excellent financial results. The resilient nature of our operations and the commitment of our employees was clearly visible in the rapid return to pre-hurricane operating conditions at our CMT facility,” said Mike Rippey, President and CEO of SunCoke Energy, Inc. “The progress we have made in the export and foundry markets is very encouraging and CMT continues to operate at a high utilisation rate. With the backdrop of strong commodity markets and rising demand for our products and services, we are well positioned to modestly exceed the top end of full year 2021 adjusted EBITDA guidance range.”
3Q21 consolidated results
Revenues in 3Q21 increased US$64.3 million as compared to the same prior year period, reflecting higher volumes across the business resulting from the strong steel and coal markets, as well as the absence of the supply relief provided to certain customers as a result of the global pandemic during the prior year period.
Net income attributable to SXC and adjusted EBITDA increased US$25.7 million and US$26.1 million, respectively, as compared to the same prior year period, primarily as a result of the higher volumes discussed above as well as lower corporate expenses.
3Q21 segment results
Domestic coke consists of cokemaking facilities and heat recovery operations at the company\s Jewell, Indiana Harbor, Haverhill, Granite City and Middletown plants.
Revenues and adjusted EBITDA increased by US$53.2 million and US$16.4 million, respectively, as compared to the same prior year period largely due to higher volumes discussed above.
Logistics consists of the handling and mixing services of coal and other aggregates at SXC’s Convent Marine Terminal (CMT), Lake Terminal, Kanawha River Terminals (KRT) and Dismal River Terminal (DRT).
Revenues and adjusted EBITDA increased by US$9 million and US$7.3 million, respectively, as compared to the same prior year period driven by continued improvement in the export coal market, which resulted in higher throughput volumes and favourable pricing at CMT.
Brazil coke consists of a cokemaking facility in Vitória, Brazil, which the company operates for an affiliate of ArcelorMittal.
Revenues and adjusted EBITDA were US$9.2 million and US$4.5 million, respectively, during 3Q21, which were higher than revenues and adjusted EBITDA of US$7.1 million and US$3.2 million, respectively, 3Q20. The increase was driven by higher volumes as compared to the same prior year period as well as production bonuses for meeting certain volume targets during the current year period.
Corporate and other
Corporate and other expenses, which include activity from the company’s legacy coal mining business, was US$7.3 million during 3Q21, US$1.1 million lower than US$8.4 million during 3Q20 driven primarily by the absence of US$0.9 million foundry related research and development costs incurred during 2020.
2021 revised outlook
The company’s 2021 revised guidance is as follows:
- Domestic coke total production is expected to be approximately 4.15 million t.
- Consolidated adjusted EBITDA is expected to be modestly above the guidance range of US$255– US$265 million.
- Capital expenditures are projected to be approximately US$90 million.
- Cash generated by operations is estimated to be US$209 – US$224 million.
- Cash taxes are projected to be US$5 – US$10 million.
Read the article online at: https://www.worldcoal.com/coal/05112021/suncoke-energy-reports-3q21-results/