US coal miner, Peabody Energy, has announced a net loss attributable to common stockholders of US$304.7 million for 3Q15 – up from US$150.6 million in 3Q15. Revenues were down to US$1.43 billion from US$1.72 billion in 2014 as the amount of coal sold – and the prices the company got for it – fell.
The company sold 58.4 million short t in 3Q15 from 62.5 million short t over the same period in 2014. In the US, the company’s sales were 2.5 million short t down on lower natural gas prices and a longwall move in Colorado. Australian sales were down 0.7 million short t, while sales from its trading and brokerage operations were down 0.9 million t.
“Peabody’s third quarter results reflect a solid operational performance across the portfolio that continues to limit the pricing impacts from unprecedented market conditions,” said Glenn Kellow, Peabody’s President and CEO.
“Our mining platform is operating well and we are balancing our dual financial objectives of optimising liquidity in response to the prolonged industry downturn, whilst keeping a strategic eye on deleveraging.”
The company also said that it was revising its expected US sales volumes for 2015 down by 5 million short t to 175 – 185 million short t on the back of an expected drop in demand for thermal coal in the US of 100 million short t in 2015. The company reckons US coal shipments will be down 90 million short t with additional production cutbacks expected – particularly outside of the Power River Basin where demand pressures are greatest. As a result, coal will generate only 35% of the US energy mix this year.
Looking ahead to next year and the company expects thermal coal consumption to be lower again in 2016 based on current natural gas prices and coal-fired power plants closures.
Edited by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/coal/27102015/peabody-energy-loss-widens-in-3q15-3073/