Peabody Energy reported second quarter 2015 revenues of $1.34 billion. Adjusted EBITDA totaled $87 million, which includes $21.2 million in restructuring charges related to reductions in corporate and regional staff and Australian Mining Operations.
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Diluted loss per share from continuing operations totaled $3.71, including a $3.06 per share impact related to asset impairments. Adjusted Diluted EPS totaled $0.65, including a $0.07 per share impact related to restructuring activities.
Beginning this quarter, the company is redefining its mining segments to include greater disclosure of the PRB, Western U.S., Australian Thermal and Australian Metallurgical coal operations.
Second quarter revenues totaled $1.34 billion compared with $1.76 billion in the prior year due to a 16 percent volume decline and lower realized pricing.
Second quarter Adjusted EBITDA declined $126.1 million from the prior period to $87.0 million, reflecting approximately $115 million in lower pricing, a $113.1 million negative hedging impact, nearly $40 million in PRB weather impacts and a $21.2 million restructuring charge.
These factors were largely offset by approximately $195 million in lower operating and administrative costs.
U.S. Mining Adjusted EBITDA declined $80.1 million to $211.5 million, primarily due to a 6.4 million ton volume decline and an 8 percent decrease in average price per ton. U.S. costs per ton improved 4 percent due to cost reductions and lower fuel prices.
PRB margin per ton totaled $3.11 in the second quarter, and includes a weather-related impact of approximately $0.65 per ton. Adverse weather reduced PRB volumes by approximately 5.5 million tons, primarily from the North Antelope Rochelle Mine, and the company expects to increase shipments in the second half of 2015.
Australian Mining Adjusted EBITDA increased $50.5 million to $55.8 million in the second quarter, as approximately $160 million in cost improvements overcame $90 million in lower pricing.
Australian costs per ton improved 28 percent to $52.48, which includes the benefit of lower currency and fuel rates.
Australian volumes totaled 8.6 million tons, including 4.1 million tons of metallurgical coal at an average realized price of $79.16 and 2.8 million tons of export thermal coal at $54.70 per ton, with the remaining 1.7 million tons delivered under domestic thermal contracts.
Second quarter results include impairment charges of $900.8 million, including $718.6 million primarily related to certain producing and non-producing Australian metallurgical coal assets, and $182.2 million from U.S. assets held for sale and not affiliated with Peabody's mining segment operations.
Results also include $8.3 million in debt extinguishment charges from refinancing the remaining 2016 Senior Notes in the second quarter.
Peabody's second quarter tax benefit totaled $93.1 million compared to a tax provision of $4 million in the prior period, primarily due to a benefit allocated to results from continuing operations related to the tax effects of items credited directly to other comprehensive income.
Loss from Continuing Operations totaled $(1.01) billion compared to $(72.0) million in the prior year. Diluted Loss from Continuing Operations totaled $(3.71) per share and Adjusted Diluted EPS totaled $(0.65).
Second quarter operating cash flow was $(59.8) million, including $8.2 million related to make-whole premiums from the retirement of the remaining 2016 Senior Notes, while capital spending was $25.8 million.
Cash balances totaled $487.1 million at the end of June, with total liquidity of $2.1 billion, including $1.5 billion available under the company's fully committed credit facility. ■