SunCoke loss widens, coke plant challenged
Illinois-based SunCoke reported a loss of $23.5mn in the third quarter, compared with a loss of $3.6mn in the same period last year. Sales fell by 11pc to $336.2mn.
SunCoke shipped less US coke in the third quarter than in the same period last year, largely because of "performance challenges" at Indiana Harbor.
"In view of the persistent operating challenges and costs at Indiana Harbor, we had to take additional actions to address this plant's performance," chief executive Fritz Henderson said.
SunCoke boosted refurbishment efforts that included "rebuilding certain ovens to address interior oven conditions," he said.
US coke sales slipped by 3pc to 1.04mn st from 1.07mn st the same period last year, while revenue from coke sales fell to $311mn from $350mn. SunCoke's Brazil coke production rose to 449,000st from 431,000st while its India joint venture coke sales fell to 71,000st from 77,000st.
SunCoke's coal mining businesses in Virginia and West Virginia posted adjusted earnings of $4.9mn. The company no longer believes a sale of its coal business is likely in the currently depressed coal market.
The acquisition of Convent Marine Terminal in Louisiana for $412mn from Raven Energy Holdings, an affiliate of the Cline Group, in September added $5.4mn to the quarter's results. The deal marked SunCoke's entry into the export business.
SunCoke expects full-year domestic coke production at 4.1-4.2mn t, with adjusted earnings of $50-55/nt.
It expects capital expenditures of $75-80mn.
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