On November 1, 2023, SunCoke Energy Inc (SXC, Financial) released its third quarter 2023 results. The company reported a net income attributable to SXC of $7.0 million, or $0.08 per share. The year-to-date net income attributable to SXC was $43.7 million, or $0.51 per share. Despite challenging market conditions, the company remains well positioned to achieve the high end of its 2023 Consolidated Adjusted EBITDA guidance range.
Financial Performance and Challenges
SunCoke Energy Inc (SXC, Financial) reported solid operating performance from its cokemaking and logistics segments. However, the financial results were impacted by lower contribution margin on non-contracted blast coke sales and lower logistics volumes. The company's net income decreased by $34.4 million from the same prior year period, primarily due to tax law changes in the United States and Brazil in both 2022 and 2023.
Financial Achievements and Key Details
Despite the challenges, SXC reported an increase in revenues for the third quarter of 2023 by $3.6 million as compared to the same prior year period. This was primarily driven by the pass-through of higher coal prices on the company's long-term, take-or-pay agreements, partially offset by lower volumes in the logistics segment.
Analysis on Company's Performance
While the company's domestic coke plants continued running at full capacity, the financial results were impacted by lower contribution margin on non-contracted blast coke sales. The logistics segment operated well but was impacted by lower volumes and pricing due to weaker demand. Despite these challenges, the company continues to successfully navigate through the market conditions and remains well positioned to achieve the high end of its 2023 Consolidated Adjusted EBITDA guidance range.
Looking Ahead
For 2023, SXC expects its Domestic Coke total production to be approximately 4.0 million tons. The company's Consolidated Net Income is expected to be between $49 million and $68 million. The Consolidated Adjusted EBITDA is expected to be on the high end of $250 million and $265 million. The capital expenditures are projected to be approximately $95 million.
Explore the complete 8-K earnings release (here) from SunCoke Energy Inc for further details.
