February 5, 2021 - SunCoke Energy, Inc. (NYSE: SXC) (the "Company" or "Suncoke") today reported fourth quarter and full-year 2020 results, reflecting strong and resilient performance from our cokemaking business during an unprecedented and challenging year.

"In 2020, while dealing with the challenges presented by the COVID-19 pandemic, our Domestic Coke fleet demonstrated excellent cost discipline and delivered extraordinary results despite running at sub-optimal levels. We extended expiring contracts with our customers in exchange for providing near-term coke supply relief, delivered robust cash flows and made significant progress towards our capital allocation objectives," said Mike Rippey, President and Chief Executive Officer of SunCoke Energy, Inc. "We also implemented a company-wide cost-reduction initiative resulting in $10 million annualized savings and developed a new product line of foundry coke during this year, further positioning SunCoke for sustained success in the future."

Looking forward, the Company expects 2021 consolidated Adjusted EBITDA to be between $215 million and $230 million, driven by our Domestic Coke plants operating at full capacity and higher volumes at Logistics.

Rippey continued, "As we move forward in 2021, we will remain focused on executing against our objectives of excellent safety performance, operational excellence and balanced capital allocation. Additionally, we will work towards further enhancing our customer contracts and providing stability to our coke operations. We will also continue our work to optimize CMT with additional products and customers. We are committed to positioning the Company for sustained success and delivering significant value to SunCoke stakeholders."

CONSOLIDATED RESULTS

Revenues decreased $87.1 million and $267.3 million for the fourth quarter and full-year 2020, respectively, primarily reflecting lower sales volumes in both Domestic Coke and Logistics segments.

Fourth quarter and full-year 2020 Adjusted EBITDA decreased by $13.8 million and $42.0 million, respectively, reflecting lower volumes, which were partially offset by operating cost savings in our Domestic Coke and Logistics segments.

Net loss attributable to SXC for the fourth quarter 2020 increased $3.6 million from the same prior year period, driven by lower operating results discussed above, mostly offset by income tax benefits, a gain on the extinguishment of our debt and slightly lower depreciation expense recognized during the current year period.

Net income attributable to SXC for the full-year 2020 increased $156.0 million as compared to 2019 driven largely by the absence of non-cash impairment related charges at Logistics, net of taxes, of $174.8 million recorded during the third quarter of 2019. The impact of the impairment related charges recorded during the prior year period were partly offset by lower depreciation expense, lower interest on lower debt balances as well as a larger gain on extinguishment of debt recorded during 2020 as compared to 2019.

SEGMENT RESULTS

Domestic Coke
Domestic Coke consists of cokemaking facilities and heat recovery operations at our Jewell, Indiana Harbor, Haverhill, Granite City and Middletown plants.

• Revenues decreased $83.7 million and $223.7 million for the fourth quarter and full-year 2020, respectively, compared with the same prior year periods, reflecting lower volumes across most of the fleet as well as the pass-through of lower coal costs, partially offset by increased volumes at Indiana Harbor from the rebuilt ovens, which were completed during 2019.
• Adjusted EBITDA decreased $8.8 million and $9.7 million for the fourth quarter and full-year 2020, respectively, as operating and maintenance cost savings across the Domestic Coke fleet partially offset the decrease in volume discussed above.

Logistics
Logistics consists of the handling and mixing services of coal and other aggregates at our Convent Marine Terminal ("CMT"), Lake Terminal, Kanawha River Terminals ("KRT") and Dismal River Terminal ("DRT").

• Revenues decreased $3.1 million for the fourth quarter 2020 and $36.8 million for the full-year 2020. Lower demand and depressed export pricing drove lower throughput volumes in the fourth quarter and full-year 2020.
• Adjusted EBITDA decreased $1.8 million for the fourth quarter 2020 and $25.3 million for the full-year 2020 due to coal customer bankruptcy partially offset by operating and maintenance cost savings.

Brazil Coke
Brazil Coke consists of a cokemaking facility in Vitória, Brazil, which we operate for an affiliate of ArcelorMittal.

• Revenues were $8.8 million and $31.6 million for the fourth quarter and full-year 2020, respectively, reflecting a decrease of $0.3 million and $6.8 million, respectively, as compared to the same prior year periods. The decrease in full year was driven by lower volumes and the unfavorable impact of foreign currency.
• Adjusted EBITDA was $3.0 million and $13.5 million for the fourth quarter and full-year 2020, respectively, a decrease of $0.3 million and $2.5 million, respectively, as compared with the same prior year periods. The decrease in full year was mainly due to lower volumes.

Corporate and Other
Corporate and other expenses, which includes activity from our legacy coal mining business, were $16.0 million and $41.9 million during the fourth quarter and full-year 2020, respectively, $2.9 million and $4.5 million higher than during the fourth quarter and full-year 2019, respectively. Corporate expenses in the current year periods included foundry related research and development costs of $1.5 million and $3.9 million during the fourth quarter and full-year 2020, respectively, as well as higher legacy costs of approximately $2.0 million during both the fourth quarter and full-year of 2020, respectively, as compared to the same prior year periods.  These increases to corporate and other expense were partly offset by lower employee related expenses.

2021 OUTLOOK

Our 2021 guidance is based on our Domestic Coke plants running at full capacity with uncontracted capacity filled by export sales and Foundry coke sales. It also assumes higher volumes at Logistics facilities.

Our 2021 guidance is as follows:

• Domestic coke total production is expected to be approximately 4.1 million tons
• Consolidated Adjusted EBITDA is expected to be $215 million to $230 million
• Capital expenditures are projected to be approximately $80 million
• Cash generated by operations is estimated to be between $160 million and $180 million
• Cash taxes are projected to be between $5 million to $10 million

To read the full results with all financial figures included, click here.