On July 31, 2024, SunCoke Energy Inc (SXC, Financial) released its 8-K filing for the second quarter of 2024. SunCoke Energy Inc operates as an independent producer of coke in the Americas, with segments in Domestic Coke, Brazil Coke, and Logistics. The company provides metallurgical and thermal coal, along with handling and mixing services for various industries.
Performance Overview
SunCoke Energy Inc (SXC, Financial) reported a net income of $23.3 million for Q2 2024, up from $22.0 million in the same period last year. Net income attributable to SXC was $21.5 million, or $0.25 per diluted share, surpassing the analyst estimate of $0.22 per share. However, revenue fell to $470.9 million, missing the estimated $510.35 million and down from $534.4 million in Q2 2023.
Key Financial Achievements
Despite the revenue shortfall, SunCoke Energy Inc (SXC, Financial) achieved several financial milestones. The company increased its quarterly dividend by 20% to 12 cents per share, reflecting confidence in its cash flow and future earnings potential. Consolidated Adjusted EBITDA for the quarter was $63.5 million, although this was a decrease from the record $74.0 million in Q2 2023.
Our cokemaking and logistics segments continued to perform well during the second quarter. Our domestic coke plants continued running at full capacity, and our logistics segment continued to deliver strong results, handling 6 million tons during the quarter," said Katherine Gates, President and CEO of SunCoke Energy, Inc.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|
| Revenues | $470.9 million | $534.4 million | $(63.5) million |
| Net Income Attributable to SXC | $21.5 million | $20.4 million | $1.1 million |
| Adjusted EBITDA | $63.5 million | $74.0 million | $(10.5) million |
Segment Performance
In the Domestic Coke segment, revenues decreased by $64.3 million to $441.6 million, primarily due to lower blast coke sales volumes and lower coal-to-coke yields. Adjusted EBITDA for this segment also fell by $10.3 million to $57.9 million.
The Logistics segment saw a modest increase in revenues and Adjusted EBITDA, both rising by $0.5 million to $20.2 million and $12.2 million, respectively. This was driven by higher transloading volumes at domestic logistics terminals.
Brazil Coke remained stable with revenues of $9.1 million and Adjusted EBITDA of $2.5 million, consistent with the prior year period.
Balance Sheet and Cash Flow
SunCoke Energy Inc (SXC, Financial) ended the quarter with $81.9 million in cash and cash equivalents, down from $140.1 million at the end of 2023. The decrease was primarily due to capital expenditures and dividend payments. The company’s total assets stood at $1,657.5 million, with total liabilities of $990.8 million.
Analysis and Outlook
SunCoke Energy Inc (SXC, Financial) continues to demonstrate resilience in its core operations, particularly in the Domestic Coke and Logistics segments. The increase in net income and dividends highlights the company's strong cash flow management. However, the decline in revenues and Adjusted EBITDA indicates challenges in sales volumes and pricing, which could impact future performance.
Overall, SunCoke Energy Inc (SXC, Financial) remains well-positioned to achieve the high end of its full-year 2024 Consolidated Adjusted EBITDA guidance range of $240 million to $255 million, supported by robust operational performance and strategic financial management.
Explore the complete 8-K earnings release (here) from SunCoke Energy Inc for further details.
