Q2 2024 SunCoke Energy Inc Earnings Call Transcript
Key Points
- SunCoke Energy Inc (SXC) achieved consolidated adjusted EBITDA of $63.5 million in Q2 2024, positioning the company to reach the high end of its full-year guidance range.
- The Board of Directors approved a 20% increase in the quarterly dividend, reflecting confidence in the company's core business strength and stability.
- Domestic coke plants operated at full capacity, and logistics terminals handled 6 million tons during the quarter, showcasing operational efficiency.
- The logistics segment experienced strong performance, with a 12.2% increase in adjusted EBITDA compared to the previous year, driven by higher transloading volumes.
- SunCoke Energy Inc (SXC) ended Q2 with a strong liquidity position of $431.9 million, including a cash balance of $81.9 million and a fully undrawn revolver of $350 million.
- Consolidated adjusted EBITDA decreased from $74 million in Q2 2023 to $63.5 million in Q2 2024, primarily due to lower blast coke sales volumes.
- Lower coal-to-coke yields and reduced API2 price adjustment benefits negatively impacted the domestic coke segment's performance.
- The company anticipates a modest decline in total logistics handling tons in the second half of the year compared to the first half.
- Net cash used in operating activities was $9.3 million, negatively impacted by the timing of approximately $68 million of cash receipts at quarter-end.
- The domestic coke segment faced challenges with lower sales volumes and pricing, affecting overall financial performance.
Good morning. Thank you all for attending the SunCoke Energy Second Quarter 2024 Earnings Call. My name is Brika, and I will be your moderator today. (Operator Instructions) I would now like to pass the conference over to your host, Shantanu Agrawal, VP, Investor Relations at SunCoke Energy. Thank you. You may proceed Shantanu.
Thanks, Brika. Good morning and thank you for joining us this morning to discuss SunCoke Energy's second 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'll open the call for Q&A.
This conference call is being webcast live on the Investor Relations section of our website, and a replay will be available later today. If we do not get to your questions on the call today, please feel free to reach out to our Investor Relations team.
Before I turn things over to Katherine, let me remind you
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