US-based coal miner Peabody Energy has announced financial results for the second quarter of the current year. The company reported a net loss of $1.04 billion for the given period, up from a net loss of $71.2 million in the corresponding quarter of the previous year. The sales revenues of the company amounted to $1.4 billion, down 23.8 percent year on year, due to a 16 percent decline in sales volume and lower realized sale prices.
Within US coal markets, coal generation declined 14 percent through June due to lower natural gas prices. Peabody believes US coal demand will decline to 90-100 million mt in 2015. The company’s metallurgical coal sales guidance for 2015 now stands at 14-15 million mt, down from the previous guidance of 15-16 million mt.
According to Peabody Energy, in the second quarter seaborne and US coal pricing declined, reflecting slower global economic growth, declining steel demand and weak US natural gas prices. In response, US and seaborne supply reductions are occurring, with shipment declines accelerating in several regions.