Cloud Peak Energy has announced its 2Q15 shipments, updated annual Adjusted EBITDA Guidance and schedule for earnings results.
2Q15 shipments from the Company’s three mines were 16 million t – a decline from 20.6 million t in 2Q14. The company has projected shipments will be between 74 and 78 million t.
A reduction in 2Q15 shipments from the company’s three mines was reported to be a result of low seasonal demand from its utility customers and rail service interruptions due to flooding. Colin Marshall, President and CEO, commented: “While the second quarter shipments were lower than we forecast, we are now in the position where we expect to be able to run at higher shipment rates for the rest of the year allowing us to leave the bottom of our adjusted EBITDA guidance range unchanged.”
For the company’s financial statements for 2Q15, Coal Peak determined it will incur a non-cash goodwill impairment charge of approximately US$33.4 million for the company’s 8400 Btu Cordero Rojo mine, representing a full write down of the Cordero Rojo mine's goodwill as of 30 June 2015 due to the weak market outlook for 8400 Btu coal. This is not included in the company’s EBITDA calculation. The company will provide further details regarding the charge
The company anticipates the net loss for 2Q15 to be between US$51 million and adjusted EBITDA to be between US$10 million and US$12 million. Following decreases in the company’s full year adjusted EBITDA guidance range by US$10 million, the full year 2015 Adjusted EBITDA is projected to be between US$110 million and US$140 million.
Edited from press release by Harleigh Hobbs
Read the article online at: https://www.worldcoal.com/coal/17072015/coal-peak-energy-2q15-outlooks-2575/