SunCoke Energy, Inc. reported results for the third quarter 2019, reflecting “the continued strong performance of the Domestic Coke segment and customer challenges facing the Logistics segment,” the company said in a press release.
The company reported a net loss of $163.0 million in Q3, compared to net earnings of $11.5 million in Q3 2018. Revenues in the third quarter 2019 reached $404.3 million, compared to $364.5 million in the prior year period, primarily reflecting the pass-through of higher coal prices, partially offset by lower volumes in the Logistics segment, the company said.
In the company’s Domestic Coke segment, consisting of cokemaking facilities and heat recovery operations at Suncoke’s Jewell, Indiana Harbor, Haverhill, Granite City and Middletown plants, revenues increased to $378.5 million, compared to $326.8 million in Q3 2018, primarily due to the pass-through of higher coal prices, the company said, adding that revenues also benefited from higher volumes at Indiana Harbor (performance of rebuilt ovens) and Granite City (absence of major outage).
The Brazil Coke segment, consisting of a cokemaking facility in Vitória, Brazil that is operated for an affiliate of ArcelorMittal, revenues totaled $9.6 million during the third quarter 2019, which was slightly lower than revenues of $9.7 million during the third quarter 2018, driven by lower sales volumes, the company said.
As for an outlook, Suncoke expects full-year 2019 domestic coke production to reach approximately 4.1 million tons. Domestic coke Adjusted EBITDA/ton is expected to be at the higher end of $53 to $55/ton, with consolidated Adjusted EBITDA expected to be between $240 to $250 million.