SunCoke Energy (NYSE: SXC) on April 6 reported preliminary first quarter 2015 domestic coke production of 998,000 tons, which is up an estimated 54,000 tons and reflects favorable production and better coal-to-coke yields this winter as compared to the prior-year period.
Domestic capacity utilization for first quarter 2015 is estimated to be 95%, as compared to 90% for the prior-year period.
Production at the Indiana Harbor cokemaking facility in Indiana improved year-over-year, but was below the first quarter 2015 targeted range. SunCoke now estimates full year 2015 coke production at Indiana Harbor will be approximately 1.1 million tons. Despite the quarter’s operating challenges at this facility, the company’s remaining domestic coke fleet continues to deliver solid operating performance and the company said it expects to achieve its full year 2015 Consolidated Adjusted EBITDA guidance of $190 million to $210 million.
SunCoke Energy supplies high-quality coke to the integrated steel industry under long-term take-or-pay coke contracts that pass through commodity and certain operating costs to customers. Its cokemaking facilities are located in Illinois, Indiana, Ohio, Virginia, Brazil and India. It is the sponsor of SunCoke Energy Partners LP (NYSE: SXCP), a publicly traded master limited partnership. In addition, it owns approximately 110 million tons of proven and probable coal reserves in Virginia and West Virginia that it has indicated a desire to sell.
SunCoke Energy Partners on April 6 reported preliminary first quarter 2015 coke production of 604,000 tons, reflecting 100% of the production at the Haverhill (in Ohio), Middletown (Ohio) and Granite City (Illinois] facilities. This is up an estimated 37,000 tons and reflects favorable production and better coal-to-coke yields this winter as compared to the prior-year period.
Production attributable to SXCP during first quarter 2015 benefited from its acquisition of a 75% interest in the Granite City cokemaking facility on Jan. 13, 2015. and increased ownership in the Haverhill and Middletown cokemaking facilities.
Capacity utilization collectively for first quarter 2015 is estimated to be 106%, as compared to 100% for the prior-year period.
The full year 2015 Adjusted EBITDA attributable to SXCP guidance remains between $169 million to $179 million, reflecting the stability of its operations, security of its long-term take-or-pay contracts and commercial protection provided under its Omnibus Agreement with SunCoke Energy.
SunCoke Energy Partners is a publicly traded master limited partnership that manufactures high-quality coke used in the blast furnace production of steel and provides coal handling services to the coke, steel and power industries. Its coal handling terminals have the collective capacity to blend and transload more than 30 million tons of coal each year and are strategically located to reach key U.S. ports in the Gulf Coast, East Coast and Great Lakes.