Peabody Energy saw modest growth in its seaborne metallurgical coal sales in 2023, reaching 6.9 million short tons (mst), and expects further expansion in 2024. The company also saw mixed results in its seaborne thermal coal segment, with production volumes exceeding guidance but average prices falling.
Seaborne Met Coal Highlights:
- 2023 sales: 6.9 mst, up from 6.6 mst in 2022.
- 2024 production target: 7.5-8.5 mst, at $110.00-$120.00/st production cost.
- Centurion project (formerly North Goonyella) on track for first development coal in April 2024.
- Q4 2023 sales: 2.1 mst, similar to Q4 2022, but up from Q3 2023.
- Q4 2023 margin: $78.85/st, up from $51.64/st in Q3 2023.
- Q4 2023 sales price: $186.74/st, up from $162.02/st in Q3 2023.
- New longwall kits installed at Shoal Creek and Metropolitan mines.
- Acquired Wards Well coal resource adjacent to Centurion mine.
Seaborne Thermal Coal:
- 2023 production: 10.0 mst, exceeding 9.5-10.5 mst guidance.
- 2024 production target: 9.0-11.0 mst.
- Q4 2023 shipments: 2.6 mst, down slightly from Q3 2023, but above Q4 2022.
- Q4 2023 average price: $97.20/st, down from $151.61/st in Q4 2022.
- Full year 2023 average price: $119.79/st, down from $149.53/st in 2022.
Financials:
- Full year 2023 net income: $759.6 million, down from $1.29 billion in 2022.
- Full year 2023 revenue: $4.94 billion, similar to 2022.
- Cash and cash equivalents: $969 million as of December 31, 2023.
- Aims to return at least 65% of annual free cash flow to shareholders.
Overall, Peabody’s seaborne met coal segment showed positive growth in 2023, with further expansion expected in 2024. However, the thermal coal segment faced challenges with lower prices. Addressing the key questions above will provide further insight into the company’s strategies and outlook for both segments.
