Q3 2024 SunCoke Energy Inc Earnings Call Transcript
Key Points
- SunCoke Energy Inc (SXC) reported a consolidated adjusted EBITDA of $75.3 million for the third quarter, which includes a one-time gain of $9.5 million from a regulatory exemption.
- The company successfully reached an agreement with the U.S. Department of Labor to eliminate the majority of its legacy federal Black Lung liabilities, resulting in a significant reduction in future expenses and volatility.
- SunCoke Energy Inc (SXC) extended its Granite City Coke supply agreement with U.S. Steel, providing stability and continuity in its operations.
- The logistics segment showed strong performance, with adjusted EBITDA increasing to $13.7 million in the third quarter, driven by higher transloading volumes and favorable price adjustments.
- The company ended the quarter with a strong liquidity position, having a cash balance of $164.7 million and a fully undrawn revolver of $350 million.
- The domestic Coke segment experienced unfavorable performance due to lower coal to coke yields, impacting the overall financial results.
- The extension of the Granite City Coke supply agreement involves reduced tonnage and lower economics compared to the previous contract.
- The company is facing delays in the GP I project due to government inaction, affecting potential future agreements and operations.
- Adverse weather impacts from Hurricane Helene contributed to the revision of the full-year domestic Coke adjusted guidance range.
- The capital investment of $12 million for expansion at the KRT logistics facility indicates increased costs, although it aims to enhance future capacity.
Good day and welcome to the third quarter, 2024 Suncoke Energy Inc earnings conference call. All participants will be in listen-only mode. Should you need assistance? Please sign a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions to ask a question. You may press star then one on your telephone keypad to withdraw your question. Please press star. Then two.
Please note this event is being recorded. I would now like to turn the conference over to Shanti Agarwal, Vice President, Finance and treasurer. Please go ahead.
Thanks Megan. Good morning and thank you for joining us this morning to discuss Suncoke Energy's third quarter. 2024 results with me today are Katherine Gates, President and Chief Executive Officer and Mark Marinko, senior Vice President and Chief Financial Officer. Following management's prepared remarks. We will open the call for Q&A this conference call is being
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