SunCoke Energy Reports Strong Q3 2024 Results

Suncoke Energy ( (SXC) ) has released its Q3 earnings. Here is a breakdown of the information Suncoke Energy presented to its investors.

SunCoke Energy, Inc. is a company that supplies high-quality coke used in the blast furnace production of steel, employing innovative heat-recovery technology and operating facilities in the United States and Brazil. In its third quarter of 2024, SunCoke Energy reported a substantial increase in net income to $33.3 million, up from $8.5 million in the same period last year, largely due to a one-time gain from a regulatory exemption. The company also achieved a consolidated adjusted EBITDA of $75.3 million, demonstrating its operational strength and strategic progress.

Key financial highlights include an increase in net income attributed to SunCoke Energy to $30.7 million, or $0.36 per diluted share, compared to $7.0 million, or $0.08 per share, in the previous year. Despite a decrease in overall revenues to $490.1 million, the company benefited from a $9.5 million gain linked to the elimination of legacy black lung liabilities. SunCoke also extended a supply agreement with U.S. Steel and secured a new coal handling contract, reflecting its robust logistics performance.

The company’s Domestic Coke segment faced challenges with decreased revenues and adjusted EBITDA, primarily due to lower coal prices and yields. Conversely, the Logistics segment showed significant growth with increased revenues and adjusted EBITDA, driven by higher transloading volumes and pricing. The Brazil Coke segment remained stable with minimal changes in financial performance compared to the previous year.

Looking forward, SunCoke Energy has raised its full-year 2024 consolidated adjusted EBITDA guidance to a range of $260 million to $270 million, indicating confidence in its operational efficiency and cost management. The company remains focused on optimizing logistics and expanding its supply agreements to enhance future profitability.