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Dec 31, 2019
Peabody Energy Q4 2019 Earnings Report
Peabody Energy reported a net loss for the fourth quarter of 2019, with revenues impacted by lower seaborne metallurgical coal volumes and pricing, while also making operational improvements and reducing costs.
Key Takeaways
Peabody Energy's fourth quarter 2019 results showed revenues of $1.12 billion, a net loss of $290.2 million, and Adjusted EBITDA of $204.9 million. The company focused on operational improvements, cost reductions, and debt reduction, while progressing the regulatory process for a proposed joint venture.
Peabody achieved a 10% cost-per-ton improvement in three operating segments.
The company lowered capital expenditures and suspended dividends due to industry conditions.
Peabody emphasized debt reduction to maintain financial strength.
Progress continued on the regulatory process for the proposed PRB/Colorado joint venture.
Revenue by Segment
Forward Guidance
Peabody anticipates a challenging start to 2020 due to macro industry conditions, but is targeting increased met coal volumes and reduced met costs, lower SG&A and lower North Goonyella holding costs to mitigate these challenges. The company's 2020 earnings profile is expected to be weighted to the second half of the year.
Positive Outlook
- Increased met coal volumes
- Reduced met costs
- Lower SG&A
- Lower North Goonyella holding costs
- Strong U.S. contracted position
Challenges Ahead
- Challenging macro industry conditions
- Pricing declines in all segments
- Lower U.S. thermal volumes
- Loss of contributions from mine closures
- Increases in the federal coal excise tax
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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