Warrior Met Coal, Inc. reported net income for Q3 2023 of $85.4 million, a decrease from net income of $98.4 million in Q3 2022. The company’s quarterly sales volumes rose 51% to 2.3 million tons in Q3 2023.
“As evidenced by our sales volumes, demand for shipments from our global contracted steelmaking customers as well as for spot cargoes from Asia was strong,” said Walt Scheller, CEO of Warrior. “We continued to see improved performance from our transportation partners and at the McDuffie Terminal, which allowed us to ship more volume and reduce our excess inventory. Warrior has had a larger ratio of spot volume this quarter, mainly due to the end of the strike and the quality change at Mine 4.
“Normally, we sell most of our spot volumes into our natural markets of Europe and South America, but both regions have offered a limited number of spot transactions this year,” Scheller said. “As such, Warrior has directed the majority of its spot business to China, India and other South Asian countries. However, our average net selling price was impacted by the freight differentials associated with the
The 51% increase in sales volume was driven by continued improved performance by the company’s rail transportation provider and the McDuffie Terminal, which enabled Warrior to export more coal, and draw down excess inventory. The company did have nearly 1 million tons in inventory due to transportation bottlenecks.
Higher production levels were attributed to both Mine No. 4 and Mine No. 7 operating at higher capacity levels. Warrior Met produced 2 million tons of met coal in Q3 2023 compared to 1.6 million tons in Q3 2022, representing a 21% increase.