On February 8, 2024, Peabody Energy Corp (BTU, Financial) released its 8-K filing, detailing its financial results for the fourth quarter and full year ended December 31, 2023. The company, a major producer and marketer of coal, reported a decrease in net income for both the quarter and the full year, with Q4 net income at $192.0 million, or $1.33 per diluted share, compared to $632.0 million, or $3.92 per diluted share, in the prior year quarter. Full-year net income also declined to $759.6 million, or $5.00 per diluted share, from $1,297.1 million, or $8.31 per diluted share in the previous year.
Despite the decline in net income, Peabody's full-year revenue remained relatively stable at $4,946.7 million, a slight decrease from $4,981.9 million in the prior year. The company's Adjusted EBITDA for the full year was $1,363.9 million, down from $1,844.7 million in the prior year. Peabody's President and CEO, Jim Grech, attributed the 2023 performance to the team's dedication, a diversified asset portfolio, and effective strategy execution.
Peabody's commitment to shareholder returns was evident as it repurchased over 11 percent of its shares outstanding in 2023. The company also reported significant operational achievements, including the commencement of new longwall production at Shoal Creek ahead of schedule and the highest quarterly sales volume from the Powder River Basin (PRB) segment since 2019.
Financial and Operational Highlights
The company's seaborne thermal segment reported Adjusted EBITDA margins of 35 percent and $99.8 million in Adjusted EBITDA, with 3.7 million tons shipped. The seaborne metallurgical segment achieved the highest quarterly sales volume for the year with 2.1 million tons shipped at an average realized price of $186.74 per ton, resulting in Adjusted EBITDA of $166.2 million and 42 percent margins. The PRB segment also performed well, shipping 23.6 million tons at an average realized price of $13.58 per ton, with Adjusted EBITDA of $37.6 million.
Peabody's shareholder return program remained robust, with $470.7 million allocated for shareholder returns in 2023. The company generated $283.6 million in operating cash flow from continuing operations and invested $157.9 million in capital expenditures in the fourth quarter. The Available Free Cash Flow (AFCF) for the year ended 2023 was $724.1 million.
The company's outlook for the first quarter of 2024 includes expected volumes of 3.9 million tons for seaborne thermal, 1.4 million tons for seaborne metallurgical, and approximately 21 million tons for U.S. thermal from the PRB segment. Costs per ton are anticipated to be within specific ranges for each segment, with the company aiming to achieve a significant percentage of the premium hard coking coal price index for the seaborne metallurgical segment.
Peabody Energy Corp (BTU, Financial) remains a key player in the coal industry, with a focus on providing essential products for energy and steel production. The company's strategic initiatives and operational efficiencies, coupled with its commitment to shareholder returns, position it to navigate the challenges of market conditions and regulatory factors.
For more detailed information on Peabody Energy Corp's financial performance and strategic outlook, investors and interested parties are encouraged to access the full earnings call via the company's website at PeabodyEnergy.com.
Explore the complete 8-K earnings release (here) from Peabody Energy Corp for further details.
