November 6, 2020 - SunCoke Energy, Inc. (NYSE: SXC) today reported results for the third quarter 2020, reflecting the continued strong performance from our cokemaking business.
"In the third quarter, cokemaking operations performed well despite running at lowered rates. Our Domestic Coke fleet demonstrated excellent cost discipline and delivered strong results while following the CDC mandated guidelines and operating at sub-optimal rates." said Mike Rippey, President and Chief Executive Officer of SunCoke Energy Inc. "We continue to execute on our revised 2020 objectives, and the third quarter results have positioned us to achieve our full year Adjusted EBITDA guidance. Additionally, we extended the Haverhill II coke agreement with AK Steel for an additional two years, further illustrating our strong, long-term relationships with our customers."
THIRD QUARTER CONSOLIDATED RESULTS
Revenue in the third quarter 2020 decreased $102.1 million compared to the prior year period, reflecting lower volumes in both our Domestic Coke and Logistics segments as well as the pass through of lower coal prices in our Domestic Coke segment.
Adjusted EBITDA decreased $18.9 million as compared to the prior year period. Lower volumes were partly offset by lower operating costs in our Domestic Coke and Logistics segments.
Net income attributable to SXC increased $160.3 million from the prior year period. The prior year period included a non-cash impairment related charge at Logistics, net of taxes, of $174.8 million.
THIRD 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 decreased $91.4 million largely due to lower volumes across the fleet as well as the pass through of lower coal costs, which decreased revenues by $56.1 million and $34.4 million, respectively.
Adjusted EBITDA decreased $11.1 million as operating and maintenance cost savings across the domestic coke fleet partially offset the decrease in volume discussed above.
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 decreased by $8.2 million and $5.3 million, respectively, driven by lower throughput volumes partially offset by lower operating costs. Lower demand continued to impact coal volumes in the third quarter.
Brazil Coke consists of a cokemaking facility in Vitória, Brazil, which we operate for an affiliate of ArcelorMittal.
Revenues and Adjusted EBITDA were $7.1 million and $3.2 million, respectively, during the third quarter 2020, which was lower than revenues and Adjusted EBITDA of $9.6 million and $3.9 million, respectively, during the third quarter 2019, driven by lower sales volumes.
Corporate and Other
Corporate and other expenses, which includes activity from our legacy coal mining business, was $8.4 million during the third quarter 2020, $1.8 million higher than $6.6 million during third quarter 2019. Corporate expenses in the current quarter included foundry related research and development costs of $0.9 million and were further impacted by period-over-period, mark-to-market adjustments in deferred compensation driven by changes in the Company's share price.
2020 Revised Outlook
Our 2020 guidance, is as follows:
To read the full results with all financial figures included, click here.