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Warrior Met Coal Reports Second Quarter 2020 Results

Coal News - Published on Thu, 06 Aug 2020

Image Source: Warrior Met Coal Coronavirus COVID19
Warrior Met Coal Inc announced results for the second quarter of 2020. Warrior reported a second quarter 2020 net loss of USD 9.2 million compared to net income of USD 125.5 million in the second quarter of 2019. The Company reported Adjusted EBITDA of USD 19.5 million in the second quarter of 2020, compared to Adjusted EBITDA of USD 175.9 million in the second quarter of 2019. The lower results reflect a challenging market environment this year as a result of the COVID-19 pandemic. Warrior CEO Walt Scheller said “As a result of the ongoing global health crisis, the met coal industry experienced a substantial reduction in customer demand and significantly lower pricing than we have seen in past quarters. As a result of the ongoing global health crisis, the met coal industry experienced a substantial reduction in customer demand and significantly lower pricing than we have seen in past quarters. Despite these challenges, we have worked hard to successfully manage our costs, working capital, and capex spending to preserve our financial flexibility and emerge from this period stronger than ever. Notably, this work has enabled us to be free cash flow positive, despite the declining price environment and lower sales volumes.”

Mr. Scheller continued “We continue to maintain our strong balance sheet and adequate liquidity, which will benefit Warrior when the global economic situation improves. Moreover, while the timing of the recovery is still unknown, our long-term growth drivers remain compelling. We are currently continuing to operate our mines, in accordance with the Centers for Disease Control and Prevention and state regulators and have taken additional precautions to protect the health and safety of our employees.”

The Company produced 2.1 million short tons of met coal in the second quarter of 2020 compared to 2.2 million short tons in the second quarter of 2019. Sales volume in the second quarter of 2020 was 1.5 million short tons compared to 2.2 million short tons in the second quarter of 2019, which was a record high quarter. Inventory levels rose to 1.6 million short tons at the end of the second quarter of 2020 from 978 thousand short tons at the end of the first quarter of 2020.

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Posted By : Yogender Pancholi on Thu, 06 Aug 2020
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