GILLETTE, Wyo. — Coal company Peabody announced in its second quarter report that it estimates it lost about $5 million worth of buildings, equipment and part inventory because of the tornado that hit North Antelope Rochelle Mine on June 23.
The company said in its report that it plans to account in the future for additional losses due to repair and cleanup costs. The mine suspended operations June 23–25, and operations have since largely returned to normal.
The company shipped and sold 18.9 million tons in the second quarter, down from 22 million tons in the first quarter. The price was an average of $13.71 per ton. Factors that prompted less sales included lower customer demand as a result of low natural gas prices and higher utility inventories. The tornado at NARM impacted train loadings.
“PRB costs of $12.33 per ton were largely in-line with the first quarter as the impact of lower production volumes was offset by lower fuel and equipment maintenance costs,” the report said.
The segment reported 10% adjusted EBITDA margins and adjusted EBITDA of $26.2 million.
The Powder River Basin’s revenue for the quarter ending in June was $259.7 million, down from the prior quarter’s $305.3 million and the second quarter of 2022’s $229.7 million. However, its past six months of revenue amounted to $565 million. The first half of 2022 saw a revenue of $480.9 million.
Costs for this year’s second quarter were $233.5 million, down from $269.5 million for the first quarter but up from $231.7 million for the second quarter of 2022. The costs for the first half of 2023 were $503 million. The first half of 2022’s costs for the Powder River Basin were $475.3 million.
Overall, the company’s second-quarter net income for stockholders is $179.2 million, or $1.15 per share, down from $268.5 million, or $1.68 per diluted share, in the first quarter.
“In the second quarter of 2023, our diverse operational platform allowed us to successfully execute on our plan despite continued volatility in the markets,” Peabody President and CEO Jim Grech said in a statement. “The strength of our seaborne portfolio is evidenced by our solid quarterly results notwithstanding a challenging pricing environment.”
