Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Suncoke Energy’s domestic coke production in 2020 is estimated at 4.3mn nt. The company is expected to achieve a consolidated adjusted EBITDA of $235-$245mn, down 1-5pc from 2019. 


The guidance assumes the Indiana Harbor site achieving full production of 1.2mn nt and run-rate EBITDA of approximately $50mn. Capital expenditures for the year are projected at $70-80mn. 


Mike Rippey, Suncoke’s president and chief executive officer, said that within the company’s core domestic cokemaking operations, corporate structure was simplified to add financial flexibility and, therefore, enhance performance and improve efficiencies for 2020.


The Coking coal provider’s revenues rose by 10 in 2019 to $1.6bn compared to the previous year.


The company’s consolidated adjusted EBITDA in 2019 was $247.9mn million, which was within its guidance range of $240-$250mn with a Q4 adjusted EBITDA of $50.8mn. SunCoke’s net income was $22.1mn before non-cash charges at its logistics division worth $174.4mn, which resulted in net losses of $152.3mn.


Revenue for the domestic coke division increased  by14pc to $1.489bn over the previous year. The company’s EBITDA increased by 9pc to $226.7mn, and its EBITDA per ton increased by 5pc during the same period.


Its Brazil coke division, which is operated for an affiliate of ArcelorMittal, encountered full-year revenues of $38.4mn in 2019, down 5pc ($2mn) compared to the previous year. The decline was attributed to lower volumes and unfavorable foreign currency adjustments. Inbound products, handled in 2019 decreased by 21pc to 21.053mn compared to the previous year. However, sales volumes increased by 3pc to 4.171mn t while the EBITDA per ton increased 5pc to $54.32/nt. 


SunCoke Energy supplies high-quality coke to the integrated steel industry under long-term, take-or-pay contracts. 

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