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Cloud Peak Energy announced Q2 result

Coal News - Published on Mon, 30 Jul 2018

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Cloud Peak Energy Inc one of the largest US coal producers and the only pure-play Powder River Basin coal company announced results for the second quarter and first six months of 2018.

Highlights

1. Amended and extended the existing Westshore throughput agreement to increase annual capacity from 5.5 million tons to 10.5 million tons in 2021 and 2022. Cloud Peak Energy retained the right to terminate the agreement at any time in exchange for a buyout payment.

2. Amended the Credit Agreement to extend its maturity to May 24, 2021 while reducing the maximum borrowing capacity from USD 400 million to USD 150 million. Ended the quarter with USD 90.2 million of cash and cash equivalents and total available liquidity of USD 171.2 million, including availability under the Credit Agreement.

3. Exercised a coal lease option with the Crow Tribe of Indians, providing approximately 290 million in-place tons(1) and extended the lease options on two additional project areas totaling approximately 1.1 billion in-place tons. Paid approximately USD 1.8 million to the Crow Tribe in connection with exercising the option and option extensions.

4. Shipments of 11.6 million tons during the second quarter of 2018 compared to 14.3 million tons for the second quarter of 2017.

5. Exported 1.3 million tons during the second quarter and have contracted 4.1 million tons for 2018 delivery at prices higher than those realized in 2017.

6. Net loss was USD 29.9 million for the second quarter of 2018 compared with a USD 6.9 million net loss during the second quarter of 2017, which was primarily driven by the lower domestic shipments during the second quarter of 2018.

7. Adjusted EBITDA of USD (0.8) million during the second quarter of 2018 compared to USD 29.6 million for the second quarter of 2017.

Mr Colin Marshall, President and Chief Executive Officer, commented that “The second quarter was challenging as shipments were behind plan primarily due to weather and operational issues at our Antelope Mine. We are working to make up as many of the delayed shipments as we can through the second half of the year. While domestic coal burn is up, and utility coal stockpiles are decreasing, buying is currently slow and prices remain subdued. Our export business remained strong allowing us to export 1.3 million tons during the quarter. We continue to expect to export approximately 5.5 million tons in 2018. We are pleased to have amended and extended our existing Westshore throughput agreement, which increases annual capacity to 10.5 million tons in 2021 and 2022.”

Source :

Posted By : Joykumar Irom on Mon, 30 Jul 2018
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