https://www.miningweekly.com

Peabody shares trade lower as profit declines; board expands $1bn share buyback plan

26th April 2018

By: Henry Lazenby

Creamer Media Deputy Editor: North America

     

Font size: - +

VANCOUVER (miningweekly.com) – US coal producer Peabody Energy has reported a 10% slide in first-quarter earnings, despite a 10% improvement in revenues and a board decision to expand the share buyback programme from $500-million to $1-billion, the company announced on Wednesday.

The company’s NYSE-listed equity fell as much as 4.25% on Thursday morning as investors digested the lower profit of $106.6-million, or $0.83 a share, in the period ended March 31, compared with net income of $115.4-million, or $6.44, in the comparable year-earlier period.

Revenues for the first quarter rose to $1.46-billion, driven by improved seaborne coal pricing and increased metallurgical coal volumes.

Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 6.62% to $363.9-million in the recent quarter, up from $341.3-million a year earlier, the company reported.

"Peabody increased volumes, revenues and Adjusted EBITDA over 2017 levels and generated record free cash flow — in addition, today we are announcing the expansion of our share repurchase program to $1-billion after accelerating our existing $500-million buyback programme," Peabody president and CEO Glenn Kellow stated in an earnings conference call.

He added that the company’s first-quarter results reflected multiple achievements despite not operating at the company’s full potential, as it generated significant cash, sold non-core assets, released cash collateral, simplified the capital structure, initiated a quarterly dividend and accelerated buyback activities.

Peabody emerged from bankruptcy protection in April 2017, with $5-billion in reduced debt. It has been pinning its strategy to increasingly access to emerging Asian economies to offset falling North American demand for coal.

The St Louis, Missouri-based miner company has reported $5.6-billion in revenue in 2017, and operates 23 mines in the US and Australia.

The company’s NYSE-listed stock has gained nearly 22% since the start of the year, but on Thursday gave back some of its gains to change hands at $36.44 apiece.

Edited by Creamer Media Reporter

Comments

Latest News

Resources Watch
Resources Watch
27th March 2024

Showroom

Goodwin Submersible Pumps Africa (Pty) Ltd
Goodwin Submersible Pumps Africa (Pty) Ltd

Goodwin Submersible Pumps Africa is sole distributors for Goodwin electrically driven, submersible, abrasion resistance slurry pumps.

VISIT SHOWROOM 
Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.134 0.165s - 90pq - 2rq
Subscribe Now