May 2, 2022 - SunCoke Energy, Inc. (NYSE: SXC) today reported results for the first quarter 2022, reflecting strong performance in our Domestic Coke and Logistics segments.
"Our Domestic Coke and Logistics segments had an excellent start to the year with the backdrop of strong commodity markets and rising demand for our products and services. Although our coke production was impacted by an unusually wet winter, it was more than offset by the higher margins from our export coke sales. Our Logistics segment continues to deliver solid results and we added new customers at our domestic terminals." said Mike Rippey, President and Chief Executive Officer of SunCoke Energy, Inc. "With the backdrop of current strength in steel and coal markets, but also factoring in the uncertain global macroeconomic conditions, we now expect to modestly exceed the top end of full year 2022 Adjusted EBITDA guidance range."
Revenues in the first quarter of 2022 increased $79.9 million as compared to the same prior year period, primarily reflecting the pass-through of higher coal prices and favorable export and foundry coke pricing.
Net income attributable to SXC and Adjusted EBITDA increased $13.0 million and $13.2 million, respectively, as compared to the same prior year period, primarily as a result of higher margins on export sales partially offset by lower domestic coke sales described below.
FIRST QUARTER SEGMENT RESULTS
Domestic Coke consists of cokemaking facilities and heat recovery operations at our Jewell, Indiana Harbor, Haverhill, Granite City and Middletown plants.
Revenues increased $76.3 million as compared to the same prior year period, primarily reflecting the pass-through of higher coal prices and favorable export and foundry pricing.
Adjusted EBITDA increased $12.5 million as compared to the same prior year period largely due to higher margins on export sales partially offset by lower domestics coke sales volumes as a result of changes in the mix of production and unfavorable weather conditions.
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 and Adjusted EBITDA increased by $2.7 million and $1.7 million, respectively, as compared to the same prior year period driven by favorable pricing at CMT based on the API2 coal index price.
Brazil Coke consists of a cokemaking facility in Vitória, Brazil, which we operate for an affiliate of ArcelorMittal.
Revenues and Adjusted EBITDA were $9.4 million and $4.2 million, respectively, during the first quarter 2022, which was comparable to results in the first quarter 2021.
Corporate and Other
Corporate and other expenses, which include activity from our legacy coal mining business, was $9.0 million during first quarter 2022, $0.7 million higher than $8.3 million during first quarter 2021 driven primarily by higher employee related costs, partly offset by a $0.9 million favorable change in period-over-period, mark-to-market adjustments on deferred compensation as compared to the same prior year period.
Our 2022 guidance is as follows:
- Domestic Coke total production is expected to be approximately 4.1 million tons
- Consolidated Adjusted EBITDA is expected to be modestly above the guidance range of $240 million to $255 million
- Capital expenditures are projected to be approximately $80 million
- Cash generated by operations is estimated to be between $190 million to $205 million
- Cash taxes are projected to be $8 million to $12 million
To see the full results with financial figures included, click here.