Warrior Met Coal reports Q3 EPS 80c, consensus 75c

Reports Q3 revenue $327.7M, consensus $324.0M. “During the third quarter, high-quality steelmaking coal prices reached a three-year low primarily driven by a confluence of weaker demand, excess Chinese steel exports into our customers’ markets, and ample supply of steelmaking coals,” commented Walt Scheller, CEO of Warrior. “We believe that current prices are below the global cost curve and are not sustainable. While we wait for market conditions to improve, we are carefully managing spot opportunities and are strategically exercising patience with certain geographies. Despite the external factors impacting our results, the third quarter represented a significant and positive milestone for Warrior as we produced the first development tons from our world-class Blue Creek growth project, on time and within budget. While we expect steelmaking coal prices to improve slightly in the fourth quarter, we believe the pricing environment will remain under pressure due to the persistent weakness in the global steel markets and delayed infrastructure spending in India. With our world-class asset base, highly flexible cost structure, and a high-performing workforce, we are well-positioned to capitalize on improved global steel demand when the market turns, while moving forward with our highly disciplined approach to completing the Blue Creek project on time and within budget.”