SunCoke Energy reports Q3 EPS 36c, consensus 22c

Reports Q3 revenue $459.9M, consensus $409.95M.Revenues in the third quarter of 2024 decreased $35.8 million as compared to the same prior year period, primarily driven by the pass-through of lower coal prices on our long-term, take-or-pay agreements. “Our domestic coke fleet continued running at full capacity this quarter, and our logistics segment again delivered strong results,” said Katherine Gates, President and CEO of SunCoke Energy (SXC), Inc. “We are pleased to have reached an agreement with the United States Department of Labor for a regulatory exemption that eliminates the majority of our legacy black lung liabilities, resulting in a $45.5 million reduction in the black lung benefits accrual on our balance sheet. This will result in lower annual legacy expenses, and eliminates potential higher collateral requirements in the future. Additionally, we executed a new barge-to-rail coal handling agreement at our Kanawha River Terminal, with a $12 million capital project to support the additional volume. We expect the contract to begin in Q2 2025 once the capital project is complete. Lastly, we reached an agreement with U.S. Steel for a 6-month extension of the cokemaking contract at our Granite City operations, with an option for U.S. Steel to extend for an additional 6 months. This agreement is part of our ongoing granulated pig iron project work.” Gates continued, “We are increasing our full-year 2024 Consolidated Adjusted EBITDA guidance range to $260 million – $270 million, reflecting favorable logistics performance, and the one-time gain from the elimination of the majority of our legacy black lung liabilities.”