The following is a summary of the SunCoke Energy, Inc. (SXC) Q1 2024 Earnings Call Transcript:
Financial Performance:
SunCoke Energy's consolidated adjusted EBITDA for Q1 2024 stood at $67.9 million.
The company reported liquidity of $470.1 million at the end of the first quarter.
Gross leverage was approximately 1.86x on a trailing 12-month adjusted EBITDA.
Net income attributable to SunCoke was $0.23 per share, reflecting a $0.04 increase from the previous year.
The company expects a full-year adjusted EBITDA guidance range of $240 million to $255 million.
Business Progress:
Throughout the quarter, SunCoke's domestic coke plants functioned at complete capacity while its logistics terminals handled 5.5 million tons.
A rise in volumes at logistics terminals can be attributed to East Coast port congestion.
SunCoke secured the year's spot blast and foundry coke sales that led to a strong annual start.
The company continues to expand the Granite City GPI project.
SunCoke is working towards growing its customer base and acquiring new business at logistics terminals.
The CMT terminal processed 1.8 million tons of coal and is expected to achieve the take-or-pay minimum for the year.
Due to favorable weather and low outage levels, domestic coke sales experienced strong performance within Q1.
Despite anticipated planned outages in Q3 and Q4, the company reassures the domestic coke EBITDA guidance of $238 million to $248 million.
The CMT terminal is projected to deliver robust long-term performance to accommodate API2 future volatility.
SunCoke maintains a significant market share in the North American blast furnace coke sector with 30-40% market share.
Despite the shutdown of the Granite City blast furnace, the demand expectations are consistent with previous years as the company holds a strong competitive position in the market.
More details: SunCoke Energy IR
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