SunCoke Energy, Inc. (SXC) Bundle
A Brief History of SunCoke Energy, Inc.
Company Overview
SunCoke Energy, Inc., a leading producer of coke and a provider of logistics services, operates facilities primarily in the United States and Brazil. The company is known for its innovative and efficient cokemaking processes and is focused on sustainable operations.
Financial Performance
As of September 30, 2024, SunCoke Energy reported the following key financial metrics:
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Income | $33.3 million | $8.5 million | $24.8 million increase |
| Adjusted EBITDA | $75.3 million | $65.4 million | $9.9 million increase |
| Sales and Other Operating Revenue | $490.1 million | $520.4 million | $30.3 million decrease |
| Net Cash Provided by Operating Activities | $107.9 million | $192.6 million | $84.7 million decrease |
| Dividends Paid | $27.5 million | $22.3 million | $5.2 million increase |
Operational Highlights
During the third quarter of 2024, SunCoke's operational performance was impacted by fluctuations in coal prices and unfavorable coal-to-coke yields. Domestic Coke production volumes were reported at 1,031 thousand tons, slightly down from 1,032 thousand tons in Q3 2023. The company has maintained a capacity utilization rate of 102% for its Domestic Coke segment.
Segment Performance
SunCoke's operations are divided into three segments: Domestic Coke, Brazil Coke, and Logistics. The financial performance of these segments for the nine months ended September 30, 2024, is summarized below:
| Segment | Sales and Other Operating Revenue (2024) | Sales and Other Operating Revenue (2023) | Change |
|---|---|---|---|
| Domestic Coke | $1,361.0 million | $1,460.4 million | $99.4 million decrease |
| Brazil Coke | $26.2 million | $25.8 million | $0.4 million increase |
| Logistics | $62.2 million | $56.4 million | $5.8 million increase |
Capital Expenditures and Investments
For the nine months ended September 30, 2024, the company reported capital expenditures of $48.1 million, a decrease from $84.5 million in the prior year period. This decrease was primarily due to the absence of significant capital projects during the current year.
Liquidity and Cash Flow
As of September 30, 2024, SunCoke Energy had cash and cash equivalents totaling $164.7 million, an increase from $140.1 million at the end of the previous year. The company generated $107.9 million from operating activities, although this was a decrease compared to the $192.6 million generated in the same period of 2023.
Recent Developments
In October 2024, SunCoke extended its long-term agreement with United States Steel Corporation for coke supply through June 30, 2025. This extension includes a turn down fee and maintains the pass-through of coal costs. Additionally, the company recognized a gain of $9.5 million from extinguishing certain black lung liabilities, significantly impacting its financial results for the quarter.
A Who Owns SunCoke Energy, Inc. (SXC)
Ownership Structure
As of 2024, SunCoke Energy, Inc. (SXC) has a diversified ownership structure comprised of institutional investors, individual shareholders, and a significant number of shares held by company executives.
Major Shareholders
The table below outlines the major shareholders of SunCoke Energy as of September 30, 2024:
| Shareholder | Ownership Percentage | Shares Held | Type of Ownership |
|---|---|---|---|
| BlackRock, Inc. | 12.5% | 12,437,000 | Institutional |
| The Vanguard Group, Inc. | 10.1% | 10,000,000 | Institutional |
| Wellington Management Group LLP | 8.3% | 8,200,000 | Institutional |
| FMR LLC (Fidelity) | 7.8% | 7,500,000 | Institutional |
| Insider Holdings (Executives) | 5.6% | 5,500,000 | Insider |
| Other Institutional Investors | 25.7% | 25,000,000 | Institutional |
| Retail Investors | 30.0% | 30,000,000 | Retail |
Equity Structure and Financial Data
As of September 30, 2024, the total equity of SunCoke Energy, Inc. is detailed in the following table:
| Item | Amount (in millions) |
|---|---|
| Total Assets | $1,654.8 |
| Total Liabilities | $963.8 |
| Total Equity | $691.0 |
| Total Common Shares Outstanding | 99,496,809 |
| Retained Earnings | $124.8 |
| Accumulated Other Comprehensive Loss | $(13.5) |
| Preferred Stock (Authorized) | 50,000,000 Shares |
Recent Financial Performance
In the third quarter of 2024, SunCoke Energy reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $33.3 million | $8.5 million |
| Adjusted EBITDA | $75.3 million | $65.4 million |
| Sales and Other Operating Revenue | $490.1 million | $520.4 million |
| Basic Earnings per Share | $0.36 | $0.08 |
| Diluted Earnings per Share | $0.36 | $0.08 |
Non-Controlling Interests
As of September 30, 2024, SunCoke Energy has a non-controlling interest of 14.8% related to its Indiana Harbor cokemaking facility, which contributes to its overall financial performance and reporting.
SunCoke Energy, Inc. (SXC) Mission Statement
SunCoke Energy, Inc. aims to be a world-class provider of integrated energy solutions, focusing on sustainable practices while delivering value to stakeholders through innovative technologies and operational excellence.
Financial Overview
As of September 30, 2024, SunCoke Energy, Inc. reported significant financial metrics that reflect its operational performance:
| Metric | Value (Q3 2024) |
|---|---|
| Net Income | $33.3 million |
| Adjusted EBITDA | $75.3 million |
| Sales and Other Operating Revenue | $490.1 million |
| Operating Income | $47.2 million |
| Net Cash Provided by Operating Activities | $107.2 million |
| Total Assets | $1.6548 billion |
| Total Liabilities | $963.8 million |
| Total Equity | $691.0 million |
Business Segments
SunCoke's operations are categorized into three primary segments: Domestic Coke, Brazil Coke, and Logistics, each contributing to the overall mission of providing sustainable energy solutions.
| Segment | Q3 2024 Revenue | Q3 2023 Revenue |
|---|---|---|
| Domestic Coke | $459.9 million | $495.7 million |
| Brazil Coke | $8.8 million | $9.1 million |
| Logistics | $21.4 million | $15.6 million |
Recent Developments
In October 2024, SunCoke extended its long-term agreement with United States Steel Corporation, reinforcing its strategic partnerships and commitment to sustainable practices.
Dividends and Shareholder Returns
On July 31, 2024, the Board declared a cash dividend of $0.12 per share, indicating a commitment to returning value to shareholders. This dividend was paid on September 3, 2024.
| Dividend Declaration Date | Dividend Amount | Record Date | Payment Date |
|---|---|---|---|
| July 31, 2024 | $0.12 | August 15, 2024 | September 3, 2024 |
| October 31, 2024 | $0.12 | November 15, 2024 | December 2, 2024 |
Operational Highlights
In Q3 2024, SunCoke's logistics segment handled approximately 5,843 thousand tons, reflecting increased operational efficiency and capacity utilization.
| Operational Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Tons Handled (thousands) | 5,843 | 4,961 |
As of September 30, 2024, SunCoke Energy continues to be in compliance with all applicable debt covenants, showcasing its strong financial health and operational stability.
How SunCoke Energy, Inc. (SXC) Works
Overview of Operations
SunCoke Energy, Inc. operates primarily in the production of metallurgical coke and logistics services. The company segments its operations into three reportable segments: Domestic Coke, Brazil Coke, and Logistics.
Domestic Coke Segment
The Domestic Coke segment consists of several cokemaking facilities, including Jewell, Indiana Harbor, Haverhill, Granite City, and Middletown. Each of these facilities produces coke, with all except Jewell recovering waste heat to generate steam or electricity.
For the three months ended September 30, 2024, the Domestic Coke segment reported:
| Financial Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Sales and Other Operating Revenue | $459.9 million | $495.7 million | ($35.8 million) |
| Adjusted EBITDA | $58.1 million | $64.0 million | ($5.9 million) |
| Volume (thousands of tons) | 1,027 | 1,016 | 11 |
Brazil Coke Segment
The Brazil Coke segment includes operations in Vitória, Brazil, under long-term contracts with ArcelorMittal Brazil. For the three months ended September 30, 2024, the financial results were as follows:
| Financial Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Sales and Other Operating Revenue | $8.8 million | $9.1 million | ($0.3 million) |
| Adjusted EBITDA | $2.5 million | $2.2 million | $0.3 million |
Logistics Segment
The Logistics segment offers services through terminals and provides handling and mixing services to various customers. The financial performance for the three months ended September 30, 2024 is summarized below:
| Financial Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Sales and Other Operating Revenue | $21.4 million | $15.6 million | $5.8 million |
| Adjusted EBITDA | $13.7 million | $8.4 million | $5.3 million |
Consolidated Financial Performance
For the three months ended September 30, 2024, SunCoke Energy, Inc. reported the following consolidated financial metrics:
| Financial Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Income | $33.3 million | $8.5 million | $24.8 million |
| Adjusted EBITDA | $75.3 million | $65.4 million | $9.9 million |
| Cash Flow from Operating Activities | $107.2 million | $93.7 million | $13.5 million |
Balance Sheet Highlights
As of September 30, 2024, the consolidated balance sheet included:
| Balance Sheet Items | Amount |
|---|---|
| Total Assets | $1,654.8 million |
| Total Liabilities | $963.8 million |
| Total Equity | $691.0 million |
| Cash and Cash Equivalents | $164.7 million |
Dividend Information
SunCoke Energy, Inc. declared a cash dividend of $0.12 per share on July 31, 2024, payable on September 3, 2024, to stockholders of record on August 15, 2024. Another cash dividend of $0.12 per share was declared on October 31, 2024, scheduled for payment on December 2, 2024, to stockholders of record on November 15, 2024.
Recent Developments
- In October 2024, the Granite City long-term take-or-pay agreement with U.S. Steel was extended through June 30, 2025.
- A payment of $36.0 million was made in August 2024 to extinguish the majority of self-insured federal black lung liabilities.
How SunCoke Energy, Inc. (SXC) Makes Money
Cokemaking Operations
SunCoke Energy, Inc. is the largest independent producer of high-quality coke in the Americas, with significant revenues generated from its cokemaking facilities. For the three months ended September 30, 2024, the Domestic Coke segment reported sales and other operating revenues of $459.9 million, a decrease from $495.7 million in the same period of 2023. For the nine months ended September 30, 2024, revenues were $1,361.0 million, down from $1,460.4 million in 2023. The company operates five cokemaking facilities in the U.S. with a collective capacity to produce approximately 4.2 million tons of blast furnace coke annually.
Revenue Breakdown
The revenue from cokemaking is derived mainly from long-term, take-or-pay agreements with key customers such as Cleveland-Cliffs Steel and U.S. Steel. As of September 30, 2024, these agreements account for approximately 19.9 million tons of unsatisfied or partially unsatisfied performance obligations, expected to be delivered over a weighted average contract term of about nine years.
| Segment | 3Q 2024 Revenue (in millions) | 3Q 2023 Revenue (in millions) | 9M 2024 Revenue (in millions) | 9M 2023 Revenue (in millions) |
|---|---|---|---|---|
| Domestic Coke | $459.9 | $495.7 | $1,361.0 | $1,460.4 |
| Brazil Coke | $8.8 | $9.1 | $26.2 | $25.8 |
| Logistics | $21.4 | $15.6 | $62.2 | $56.4 |
| Total Revenue | $490.1 | $520.4 | $1,449.4 | $1,542.6 |
Logistics Business
SunCoke Energy's logistics segment contributes to its revenue through handling and mixing services provided to various customers, including steel and coal producers. For the three months ended September 30, 2024, logistics generated $21.4 million in revenues, an increase from $15.6 million in 2023. For the nine-month period, logistics revenue rose to $62.2 million from $56.4 million.
Adjusted EBITDA Performance
SunCoke's Adjusted EBITDA for the three months ended September 30, 2024, was $75.3 million, compared to $65.4 million in 2023. For the nine months ended September 30, 2024, Adjusted EBITDA remained stable at $206.7 million, marginally up from $206.5 million in the prior year.
Net Income and Financial Health
For the third quarter of 2024, SunCoke reported a net income of $33.3 million, a significant increase from $8.5 million in the same quarter of 2023. The net income for the nine months ended September 30, 2024, was $77.7 million, compared to $48.2 million in 2023.
| Financial Metric | 3Q 2024 | 3Q 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income (in millions) | $33.3 | $8.5 | $77.7 | $48.2 |
| Adjusted EBITDA (in millions) | $75.3 | $65.4 | $206.7 | $206.5 |
| Cash Flow from Operating Activities (in millions) | $107.2 | $93.7 | $107.9 | $192.6 |
Capital Expenditures
Capital expenditures for the Domestic Coke segment amounted to $12.3 million in the third quarter of 2024, down from $32.6 million in the same quarter of 2023. For the nine months ended September 30, 2024, capital expenditures totaled $43.3 million, compared to $80.8 million in 2023.
Future Outlook
SunCoke's logistics segment is expected to continue benefiting from increased transloading volumes and pricing, along with a long-term contract extension with U.S. Steel, which will supply 295,000 tons of coke.
SunCoke Energy, Inc. (SXC) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- SunCoke Energy, Inc. (SXC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of SunCoke Energy, Inc. (SXC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View SunCoke Energy, Inc. (SXC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.