Cloud Peak Energy, the only pure-play Powder River Basin (PRB) coal miner, has announced a loss of US$15.6 million for Q1 2014. The company made a profit of US$ 15.4 million in the same period last year.
“Winter weather and rail service interruptions in Q1 continued to impact our shipments,” said Colin Marshall, president and CEO of Cloud Peak in a statement. As a result, the company has revised its forecast for production and adjusted EBITDA down, leaving it “fully sold for 2014” and “focused on selling into the improving markets for 2014”.
Domestically, the company sees the market for thermal coal improving through the year after the severe winter saw record drawdowns of gas and coal stocks. “If there is a normal summer cooling demand, it will be difficult to rebuild coal and gas inventories ready for next winter,” said the company, providing support for higher prices.
Internationally, the company noted continued strong demand for PRB coal from Asia for its Spring Creek coal, which is said was now considered equivalent to the best Indonesian coal brands that many Asian plants are designed to burn.
Coal shipments are now expected to total US$86 – 90 million short t from the company’s three mines with adjusted EBITDA of US$ 125 – 210 million.
Written by Jonathan Rowland
Read the article online at: https://www.worldcoal.com/coal/06052014/cloud_peak_announces_q1_2014_loss_coal799/