In its Q3 2022 earnings release, SunCoke Energy said it expects to surpass its full-year 2022 Adjusted EBITDA guidance high end of $285 million, mainly driven by higher margins on export coke sales. The company also said its board had approved a capital project that will enable its Jewell facility to produce 100% foundry coke, while maintaining the flexibility to shift between blast and foundry coke production.
SunCoke continues to see strong financial performance in its domestic coke and logistics segments. “Our Domestic Coke business performed at exceptionally high levels during the quarter, which allowed the company to fully realize the benefits of a strong export coke market,” said Mike Rippey, president and CEO of SunCoke Energy, Inc. “Our Logistics segment continued to deliver solid results, with higher volumes and favorable pricing. Additionally, we are excited to announce the foundry expansion project at our Jewell facility, which will enable us to further build upon our success in the foundry markets.”
Suncoke’s domestic coke operations consist of cokemaking facilities and heat recovery operations at the Jewell, Indiana Harbor, Haverhill, Granite City and Middletown plants. During the quarter the company sold more than 1 million tons of coke, which was down slightly from the same period a year ago. Revenues, however, increased by $147.4 million to $487.7 million during the same period, reflecting the pass-through of higher coal prices and favorable export coke pricing.
The company’s logistics segment consists of the handling and mixing services of coal and other aggregates at the Convent Marine Terminal (CMT), Lake Terminal, Kanawha River Terminals (KRT) and Dismal River Terminal (DRT). Revenues for this segment increased nearly 19% to $20.2 million for Q3 2022, compared to $17 million during the same timeframe last year.
SunCoke revised its 2022 guidance for total domestic coke production to approximately 4.1 million tons.