Peabody reports strong results for third quarter
Peabody Energy reported preliminary unaudited financial results for the third quarter in which it said it expects to report third quarter revenue of $670 to $690 million.
The global energy crisis has fueled higher demand for coal around the world. Peabody, the largest coal producer in the United States has benefitted from the surge with a 17 percent increase in its share price, the company reported.
Bloomberg reported that s ales exceeded $900 million, the highest in seven quarters, and adjusted earnings before interest, taxes, depreciation and amortization of $280 million to $290 million will be triple the year-ago figure, according to preliminary earnings released by the company.
U.S. coal mining companies are heading into earnings season buoyed by increasing consumption at domestic utilities, higher demand for international shipments and prices climbing around the world. The global economic recovery has increased electricity consumption, leading to a shortage of natural gas and strong demand for coal.
This comes at a time when world leaders will converge in Glasgow in two weeks for a critical climate conference.
“We remain optimistic about the future, given strong coal pricing and global demand fundamentals,” Peabody Chief Executive Officer Jim Grech said in the statement.
Peabody surged as much as 17 percent in New York, the most intraday since July. The shares have surged more than sevenfold this year as demand for coal has climbed. The company will issue its full third-quarter results on Oct. 28.
Peabody is the first U.S. coal producer to provide results for the quarter. Rivals may also report solid gains as power producers around the world are calling for more coal to head off potential shortfalls. U.S. miners are shipping as much as they can dig up, though their ability to increase production is constrained by labor shortages and mining capacity that’s been in decline for years.