Suncoke Energy (SXC) Reports Q4 Revenues Beat; Provides FY20 Outlook

Suncoke Energy (NYSE: SXC) reported Q4 revenue for the quarter came in at $397.2 million versus the consensus estimate of $373.2 million.

"In 2019, we simplified our corporate structure to build financial flexibility and made major strides in enhancing performance and efficiency within our core domestic cokemaking operations, leading to strong results for the year and a solid foundation from which to drive momentum into 2020," said Mike Rippey, President and Chief Executive Officer of SunCoke Energy, Inc. "Despite the customer challenges within our Logistics segment, we delivered robust cash flows and aggressively pursued a balanced yet opportunistic approach to capital allocation in 2019 and set the stage for continued progress on our capital allocation priorities in 2020."

Looking forward, the Company expects 2020 consolidated Adjusted EBITDA to be between $235 million and $245 million, driven by continued improvement in our cokemaking business, partially offset by the challenges faced by our coal export customers in our logistics business.

Rippey continued, "As we move forward in 2020, we will remain focused on executing against our objectives of improved safety performance and operational excellence. Additionally, we will work towards development of new business opportunities for our Logistics segment and navigating through the upcoming coke contract renewal negotiations. We are committed to positioning the Company for sustained success and delivering significant value to SunCoke stakeholders."

2020 OUTLOOK

Our 2020 guidance assumes Indiana Harbor achieving full production of 1.2 million tons and run-rate EBITDA of approximately $50 million. It also assumes continued Logistics customer disruption, including an anticipated renegotiated contract with our CMT customer, Foresight Energy.

Our 2020 guidance is as follows:

• Domestic coke production is expected to be approximately 4.3 million tons
• Consolidated Adjusted EBITDA is expected to be between $235 million to $245 million
• Capital expenditures are projected to be between $70 million to $80 million
• Cash generated by operations is estimated to be between $170 million and $185 million
• Cash taxes are projected to be between $4 million to $8 million

For earnings history and earnings-related data on Suncoke Energy (SXC) click here.

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