Contura Energy announces 2018 guidance

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Contura Energy, Inc, a leading US coal supplier, announced that production, cost and sales guidance for full-year 2018. The company expects to announce its fourth quarter and year-end 2017 results on or around March 29, 2018. The company expects total 2018 coal shipments to be in the range of 15.0 million to 16.8 million tons across all operations, including 3.7 million to 4.1 million tons of captive Central Appalachia metallurgical coal and 4.2 million to 5.0 million tons of metallurgical coal through its Trading and Logistics segment. Northern Appalachia shipments, sold primarily into thermal markets, are anticipated to be between 7.1 million and 7.7 million tons.

As of February 6, 2018, 16% of the midpoint of anticipated 2018 CAPP coal shipments were committed and priced at an average expected per-ton realization of USD 113.53, with an additional 33% committed and either unpriced or priced based on various indices. Based on the midpoint of guidance, 88% of anticipated 2018 NAPP coal shipments were committed and priced at an average expected per-ton realization of USD 41.96.

Contura expects its 2018 CAPP cost of coal sales per ton to range from USD 68.00 to USD 73.00. NAPP cost estimates are projected to be between USD 29.00 to USD 33.00 per ton. Additionally, costs related to the company’s idle operations are expected to be between USD 10 million and USD 12 million for full-year 2018.

The margin from Contura’s Trading and Logistics platform is expected to average USD 9 to USD 15 per ton for the full-year 2018. The margin guidance excludes consideration of any remaining shipments relating to the Powder River Basin assets that the company divested in early December 2017.

Contura’s capital expenditures for 2018 are expected to be in the range of USD 64 million to USD 74 million, while SG&A guidance is estimated at USD 32 million to USD 36 million, excluding one-time and non-recurring items, annual incentive bonus and stock compensation. Depreciation, depletion and amortization for 2018 is expected to be between USD 40 million and USD 50 million. The company expects 2018 cash interest expense to be between USD 25 million and USD 27 million.

Source : Strategic Research Institute, SteelGuru