Peabody Energy slips as tame outlook outweighs Q4 earnings beat

|About: Peabody Energy Corp. (BTU)|By:, SA News Editor

Peabody Energy (BTU -1.9%) is lower even after reporting better than expected Q4 earnings, reversing a large loss a year ago, and initiating a quarterly dividend.

BTU says Q4 adjusted EBITDA totaled $416M, nearly double the prior year's $122M, as realized pricing for Australian thermal coal rose 15% Y/Y to $55.22/ton, driven by strong seaborne demand; BTU's Australian thermal coal segment earned EBITDA margins of 38%.

But BTU issues a somewhat tame outlook for 2018, targeting seaborne metallurgical and thermal coal export volumes in line with 2017 shipments and expecting modestly lower volumes from the U.S. Powder River Basin.

BTU plans 2018 capex of ~$105M, with $85M toward Australian operations for life extension projects.

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