On October 26, 2023, Peabody Energy Corp (BTU, Financial) released its earnings report for the third quarter of 2023. The company reported a net income attributable to common stockholders of $119.9 million, or $0.82 per diluted share, a decrease from $179.2 million, or $1.15 per diluted share in the second quarter. Despite the drop in net income, the company delivered strong operational results with better-than-expected production and effective cost management.
Financial Highlights
Peabody Energy Corp (BTU, Financial) reported an Adjusted EBITDA of $270.0 million in the third quarter of 2023, compared to $358.2 million in the prior quarter. The company also reported operating cash flow from continuing operations of $87.5 million and $989 million of Cash and Cash Equivalents at the end of September 2023.
Peabody Energy Corp (BTU, Financial) exceeded anticipated PRB volumes by 8 percent, shipping approximately 23 million tons in the quarter. The company also reported lower than anticipated costs per ton in three of its four operating segments during the quarter.
Operational Achievements
Peabody Energy Corp (BTU, Financial) made substantial progress on strengthening its metallurgical platform. The company re-entered Zone B at North Goonyella and agreed to acquire an adjacent coal deposit. The addition of this world-class coal deposit in the same seam as North Goonyella leverages the company's existing infrastructure and equipment, supporting a North Goonyella mine life of 25 years or more.
The company also reached a $72 million settlement with the U.S. Department of Labor (DOL) for disputed legacy black lung claims, avoiding significantly higher collateral requirements under proposed DOL rules.
Shareholder Return Program
Year to date, Peabody Energy Corp (BTU, Financial) returned $307 million through its shareholder return program through October 20, including $287 million of share repurchases and dividends of $21 million. The company declared a dividend on common stock of $0.075 per share on October 26, 2023.
Outlook
For the fourth quarter of 2023, Peabody Energy Corp (BTU, Financial) expects seaborne thermal volumes to be 4.2 million tons, including 2.8 million export tons. The company also expects seaborne met volumes to be 2.2 million tons. In the U.S. Thermal segment, PRB volume is expected to be approximately 21 million tons and other U.S. Thermal volume is expected to be approximately 4.1 million tons.
Explore the complete 8-K earnings release (here) from Peabody Energy Corp for further details.
