Thu, Apr. 23, 11:49 AM
- Peabody Energy (BTU -7.5%) plunges after reporting a much bigger than expected Q1 loss due to lower prices and declining Chinese demand, and issuing disappointing guidance.
- BTU says it now expects a Q2 adjusted EPS loss of $0.59-$0.49, vs. analyst consensus estimate for a loss of $0.35.
- BTU's Australian mining business swung to an operating loss of $24.5M vs. a profit of $1.8M in the year-ago quarter, due to hedging losses; before hedging, Australian operations rose $61.9M from $21M.
- BTU says U.S. coal generation fell 14%, alongside a 14% increase in natural gas generation, and cuts its 2015 U.S. sales forecast to 180M-190M tons from 190M-200M tons previously.
- Q1 revenue fell 5.5% Y/Y to $1.54B, due to lower pricing and a shift in U.S. production mix toward the Southern Powder River Basin; sales volume slipped 1.1%.
- Q1 results include the impact of $103M related to currency and fuel hedging.
- While Q1 results missed, Citi's Brian Yu believes BTU is "structurally different from its weaker U.S. peers," noting that BTU outlined $685M of potential annual cash improvements by early 2017, including $275M of lower cash payments related to PRB reserves and $335M of savings due to lower currency rates and fuel prices as hedges roll off.
Thu, Apr. 23, 8:04 AM
Wed, Apr. 22, 5:30 PM
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Tue, Feb. 17, 9:17 AM
- Walter Energy (NYSE:WLT) -10.1% premarket after reporting a wider than expected Q4 loss and revenues that fell well short of analyst estimates.
- WLT says Q4 sales of metallurgical coal sales declined to 2M metric tons from 2.9M, and forecasts 2015 met coal sales to fall to 8.5M-9M metric tons from 9.7M in 2014.
- Expects 2015 capex to be in line with 2014, while further reducing SG&A expenses by 10%.
- WLT suspended its quarterly dividend last month, following cuts or reductions at rivals Peabody Energy (NYSE:BTU) and Arch Coal (NYSE:ACI).
Tue, Feb. 3, 10:46 AM
- Arch Coal (ACI +8.9%) opens sharply higher after reporting a smaller than expected Q4 loss as it cut costs to $16.46/ton from $18.10/ton in the prior-year quarter.
- ACI says it is suspending its annual dividend to preserve current levels of liquidity, although Cowen analysts say the suspension will save only ~$2M/year.
- ACI says it had available liquidity of ~$1.2B at year-end 2014.
- Expects costs in the Powder River Basin and Appalachian region, which account for most of its coal production, to fall in 2015, reflecting an improved rail performance, the impact of lower diesel prices and a full year of steady production at its low-cost Leer mine in West Virginia.
- ACI also says it expects capital spending of $145M-$160M in 2015, roughly flat vs. 2014's $147M in capex.
- Forecasts FY 2015 coal sales of 130M-143M tons after selling 134.4M tons in 2014 and 35.2M tons in Q4 (+9% Y/Y).
- Other coal names also are higher: ANR +7.8%, BTU +5.6%, CLD +2.3%, WLB +2.6%, WLT +9.4%, CNX +1.7%, RNO +4.3%.
Tue, Jan. 27, 8:35 AM
- Peabody Energy (NYSE:BTU) -6.4% premarket after falling far short of expectations for Q4 earnings and reducing its quarterly dividend to $0.0025/share from $0.085.
- BTU says Q4 overall revenue fell 3.3% Y/Y to $1.68B while sales volume slipped 0.5%; revenue fell 2.2% to $983M in its U.S. mining operations as revenue/ton dropped 5.8%, while revenue declined 5.6% to $676M in its Australian mining operations as revenue/ton fell 17%.
- For 2015, BTU expects sales volumes of 245M-265M tons with U.S. operations seeing a 2%-4% decline in revenues/ton and costs/ton; expects Australia metallurgical coal sales of 15M-16M tons, export thermal sales of 12M-13M tons, and cost/tons lower by 2%-4%.
- Plans $180M-$200M in 2015 capex, mostly allocated to sustaining capital items; specific projects include the Gateway North extension to replace production from the existing operation, and the Wolf Creek development in Colorado.
- For Q1, BTU targets adjusted EBITDA of $160M-$200M and an EPS loss of $0.39-$0.32 vs. analyst consensus estimate for a $0.24 loss.
Tue, Jan. 27, 8:06 AM
Mon, Jan. 26, 5:30 PM
Oct. 20, 2014, 9:19 AM
- Peabody Energy (NYSE:BTU) +1.1% premarket after posting a lighter than expected Q3 loss, as it controlled costs at its mines in Australia and helped lessen the impact of lower coal prices.
- BTU says its Q3 U.S. mining revenues fell 2.7% to $1.02B due to lower volumes and reduced Midwestern revenues per ton, while revenue/ton increased slightly to $21.24; Australian revenues slipped 4.1% to $676M as higher volumes partly offset a 13% reduction in revenues/ton.
- Expects to post a FY 2014 EPS loss of ($1.38)-($1.48) vs. consensus estimate for a loss of ($1.46), and foresees sales of 245M-255M tons vs. 2013 sales of 251.7M tons; also forecasts FY 2014 adjusted EBITDA of $765M-$815M.
- Projects FY 2014 U.S. demand for its coal to rise by 15M tons above 2013 levels, and says 2014 production is fully priced and 2015 production is ~85% fully priced.
- Says costs in the U.S. are 1%-3% per ton lower, and expects revenue/ton to come in 2%-4% below 2013 levels, while Australian costs have dropped by a more than expected ~$70/ton.
Oct. 20, 2014, 8:02 AM
Oct. 19, 2014, 5:30 PM
Jul. 29, 2014, 10:33 AM
- Arch Coal (ACI +3.5%) moves higher after its Q2 earnings loss came in better than expected as operating costs per ton fell 7%.
- Q2 sales fell 7% Y/Y to $713.8M, missing analyst consensus, but operating costs per ton fell to $20.55 from $21.19.
- ACI lowers its FY 2014 sales volume targets, including cutting its thermal sales volumes forecast to 124M-130M tons from 124M-132M tons to reflect the effects of transportation bottlenecks and the impact of a fall in steel production.
- Other coal names also are higher: ANR +4.3%, ARLP +2.4%, PVA +1.9%, WLB +1.9%, BTU +1.4%, RNO +0.9%, WLT +0.8%, KOL +0.4%.
Jul. 22, 2014, 10:59 AM
- Peabody Energy (BTU +1.5%) moves higher after reporting a Q2 loss that was in line with estimates and a ~2% rise in revenue, helped by an increase in shipments and prices at its mining operations in the western U.S.
- Q2 U.S. mining revenue rose 6.2% to $1.03B, while revenue per ton gained 1.1%, but revenue from Australian mining operations fell 5% to $744.8M, with revenue per ton down 15%.
- Issues downside EPS guidance for Q3, now seeing a loss of $0.40-$0.53 vs. analyst consensus expectations for a $0.18 loss.
- Nevertheless, BTU sees market conditions improving, noting that coal's market share of global energy consumption is now 30%, highest since the 1970s, U.S. coal demand has been expanding for the past two years, and seaborne market fundamentals are seen improving into 2015.
Jul. 22, 2014, 8:02 AM
Jul. 21, 2014, 5:30 PM
Apr. 24, 2014, 8:59 AM
- Peabody Energy (BTU) -2% premarket after reporting an unexpected Q1 loss and slightly lower than expected revenues, as a 7% increase in sales volumes to 61.3M tons of coal was offset by weak pricing for steelmaking coal.
- BTU sees a Q2 EPS loss of $0.14-$0.39 vs. consensus $0.14 loss; sees FY 2014 shipments of 245M-265M tons.
- Australian revenue of $612M was hit by a 17% decline in revenues per ton, while Australian sales totaled 8.2M tons, including 3.2M tons of met coal and 3.1M tons of seaborne thermal coal.
- U.S. mining revenues rose to $985M as a 10% increase in western shipments overcame a 7% decline in U.S. revenues per ton.
- Reduced unit costs in both U.S. and Australian operations by 4% and kept capital spending at 10-year lows, improving liquidity to $2.1B while cash rose to $508M.
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