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Jun 30, 2020
Peabody Energy Q2 2020 Earnings Report
Peabody Energy's Q2 2020 results were impacted by challenging seaborne market conditions and reduced U.S. thermal operations, with a significant impairment charge at NARM.
Key Takeaways
Peabody Energy reported Q2 2020 revenues of $626.7 million, a net loss of $1.55 billion, and Adjusted EBITDA of $23.4 million. The company faced challenges due to weak seaborne market conditions and lower U.S. thermal demand, leading to a $1.42 billion impairment charge at the North Antelope Rochelle Mine (NARM).
Revenues were $626.7 million, reflecting lower shipments and weak pricing.
Loss from continuing operations was $1.55 billion, impacted by a $1.42 billion impairment charge at NARM.
Adjusted EBITDA was $23.4 million.
The company is evaluating strategic financing alternatives.
Revenue by Segment
Forward Guidance
Peabody is continuing its suspension of full-year 2020 guidance targets due to continued uncertainties with respect to COVID-19.
Positive Outlook
- 87 million tons of PRB coal priced at an average price of $11.36 per ton
- 18 million tons of other U.S. thermal coal priced at an average price of $36 per ton
- 7.2 million tons of seaborne thermal coal priced at an average price of $58 per short ton
- Full-year SG&A expense is now expected to be approximately $110 million
- 2020 capital expenditures have been reduced to $200 million
Challenges Ahead
- Continued uncertainties with respect to COVID-19, including the duration, severity, scope, and necessary government actions to limit the spread
- Deliveries will be dependent on general economic conditions, weather, natural gas prices and other factors
- Company remains focused on preserving cash and operational liquidity during these challenging times
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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