Cloud Peak Energy Inc. (one of the largest US coal producers and the only pure-play Powder River Basin (PRB) coal company), today announced results for the fourth quarter and the full year 2016.
Highlights and recent developments
- Net income of US$24.5 million, Adjusted EBITDA of US$40.0 million, and an average cost of US$8.96/ short t, were all improved results as compared to the fourth quarter of 2015.
- The company had the best safety record in its history with a full year AIFR of 0.25.
- Exported 0.4 million short t during the fourth quarter and have now contracted 1.9 million short t of Asian export sales to be delivered in the first half of 2017.
- The company amended and shortened the term of its port and rail agreements to reduce future take-or-pay commitments to approximately US$51 million.
- As planned, the company has eliminated self-bonding for reclamation liabilities.
- In January 2017, amended and extended the A/R Securitisation Programme through the first quarter of 2020, while introducing letter-of-credit issuance capacity.
- Entered 2017 with reduced leverage and greater financial flexibility as a result of amending the company’s US$400 million Credit Agreement and completing a second-lien 2021 bond exchange in 2016. We entered 2017 with available liquidity of US$440 million.
Colin Marshall, President and Chief Executive Officer, commented:
“In an improving environment, we were able to deliver a solid operational and financial performance in the fourth quarter. Our lower operating costs reflect the many cost control and efficiency initiatives we have put in place during the year and the benefit of increased shipments compared to the first half. During the quarter, we also exported coal for the first time in nearly a year and have now contracted 1.9 million short t to be shipped in the first half of 2017. At the same time, we renegotiated our port and rail agreements in late 2016 and early 2017 to significantly reduce our take-or-pay commitments. I am very proud of what was achieved by everyone at Cloud Peak Energy in 2016. It was a very challenging year during which we were able to improve our operations’ efficiency and flexibility while greatly strengthening our financial position and producing our best safety performance ever.”
Read the article online at: https://www.worldcoal.com/coal/17022017/cloud-peak-energy-inc-announces-results-for-4q16-and-fy16/