Reports related to this article:
Project(s): View 8 related projects in PECWeb
Plant(s): View 5 related plants in PECWeb
Released February 15, 2023 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--Peabody Energy (NYSE:BTU) (St. Louis, Missouri) reaped the benefits of a strong pricing environment for coal in 2022, as its revenues grew significantly, despite higher production costs and an overall decline in sales for most of its coal products. But the company remains cautious about the long-term outlook for U.S.-based coal, which did not fare as well in 2022 as Peabody's Australian holdings. Industrial Info is tracking more than $368 million worth of active projects globally from Peabody.
Click on the image at right for a graph detailing Peabody's active projects, by U.S. or Australian state.
Peabody's net income for 2022 stood at roughly $1.3 billion, compared with only $360.1 million in 2021, despite a 5% drop in tons of coal sold globally, as well as higher costs per ton across all segments. These trends were noticeable in the company's Seaborne Thermal segment, which is based at two mines in Australia, which saw a 10% year-over-year drop in coal sold to 15.6 million tons, while costs per ton increased 33% to $44.65. Normally, that would be a recipe for disaster, but revenues per ton averaged $86.07--a 59% increase from 2021.
The result for the Seaborne Thermal segment? Adjusted earnings of $647.6 million, nearly double the $353.1 million from 2021. One of the segment's two sites, the Wambo Underground Mine in New South Wales, is undergoing a longwall equipment relocation in its South Bates Extension area, which is expected to see another equipment relocation kickoff in the third quarter. Both involve moving Joy Global brand mining machines to improve efficiency. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can read detailed reports on the ongoing and third-quarter relocations.
The economic environment was less advantageous for Peabody's Powder River Basin segment, based in Wyoming, where a 6.6% year-over-year decline in coal sold (to 82.6 tons)--along with a 24.7% increase in costs per ton to $12.06--could not be offset by a 17.3% increase in revenue per ton to $12.89. Adjusted earnings for the segment came in at $68.2 million for 2022, roughly half of 2021's $134.9 million.
The short-term benefits of a tight energy market--fueled in part by Russia's invasion of Ukraine and the subsequent scrambling of Europe's energy priorities--have not changed the long-term realities for U.S.-based thermal coal, which remain unfavorable when compared with dominant natural gas sources and the rising demand for renewable sources. Peabody is exploring the closure of at least two of its Powder River Basin mines: the North Antelope/Rochelle Mine in Wright, Wyoming, and the Caballo Coal Mine in Gillette, Wyoming. Either or both closures could begin in the next five to six years, if market conditions do not change. Subscribers can read detailed reports on the North Antelope/Rochelle and Caballo plans.
Better news came from Peabody's other U.S. thermal mines, which reported a 9% increase in tons sold, but a 21.7% increase in revenues per ton, leading to $242.4 million in adjusted revenues for 2022, compared with $164.2 million in 2021. One of those mines, the Bear Run Mine in Dugger, Indiana, is preparing to kick off a yearlong expansion and life-extension project this spring. It is expected to add 20 years of mine life and increase capacity 50% to 12 million tons per year. Subscribers can learn more from Industrial Info's project report.
Peabody also is considering a series of repairs and rebuilds to excavation equipment at its El Segundo Mine in Crownpoint, New Mexico, each of which would take place during an annual maintenance shutdown in the second quarter. Last year, Peabody announced it had extended the life of the El Segundo Mine through a new long-term coal-supply agreement. Subscribers can read detailed reports on the repairs and rebuilds proposed to begin in second-quarter 2023, second-quarter 2024 and second-quarter 2025.
Subscribers to Industrial Info's GMI Metals & Minerals Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active projects from Peabody.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Click on the image at right for a graph detailing Peabody's active projects, by U.S. or Australian state.Peabody's net income for 2022 stood at roughly $1.3 billion, compared with only $360.1 million in 2021, despite a 5% drop in tons of coal sold globally, as well as higher costs per ton across all segments. These trends were noticeable in the company's Seaborne Thermal segment, which is based at two mines in Australia, which saw a 10% year-over-year drop in coal sold to 15.6 million tons, while costs per ton increased 33% to $44.65. Normally, that would be a recipe for disaster, but revenues per ton averaged $86.07--a 59% increase from 2021.
The result for the Seaborne Thermal segment? Adjusted earnings of $647.6 million, nearly double the $353.1 million from 2021. One of the segment's two sites, the Wambo Underground Mine in New South Wales, is undergoing a longwall equipment relocation in its South Bates Extension area, which is expected to see another equipment relocation kickoff in the third quarter. Both involve moving Joy Global brand mining machines to improve efficiency. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can read detailed reports on the ongoing and third-quarter relocations.
The economic environment was less advantageous for Peabody's Powder River Basin segment, based in Wyoming, where a 6.6% year-over-year decline in coal sold (to 82.6 tons)--along with a 24.7% increase in costs per ton to $12.06--could not be offset by a 17.3% increase in revenue per ton to $12.89. Adjusted earnings for the segment came in at $68.2 million for 2022, roughly half of 2021's $134.9 million.
The short-term benefits of a tight energy market--fueled in part by Russia's invasion of Ukraine and the subsequent scrambling of Europe's energy priorities--have not changed the long-term realities for U.S.-based thermal coal, which remain unfavorable when compared with dominant natural gas sources and the rising demand for renewable sources. Peabody is exploring the closure of at least two of its Powder River Basin mines: the North Antelope/Rochelle Mine in Wright, Wyoming, and the Caballo Coal Mine in Gillette, Wyoming. Either or both closures could begin in the next five to six years, if market conditions do not change. Subscribers can read detailed reports on the North Antelope/Rochelle and Caballo plans.
Better news came from Peabody's other U.S. thermal mines, which reported a 9% increase in tons sold, but a 21.7% increase in revenues per ton, leading to $242.4 million in adjusted revenues for 2022, compared with $164.2 million in 2021. One of those mines, the Bear Run Mine in Dugger, Indiana, is preparing to kick off a yearlong expansion and life-extension project this spring. It is expected to add 20 years of mine life and increase capacity 50% to 12 million tons per year. Subscribers can learn more from Industrial Info's project report.
Peabody also is considering a series of repairs and rebuilds to excavation equipment at its El Segundo Mine in Crownpoint, New Mexico, each of which would take place during an annual maintenance shutdown in the second quarter. Last year, Peabody announced it had extended the life of the El Segundo Mine through a new long-term coal-supply agreement. Subscribers can read detailed reports on the repairs and rebuilds proposed to begin in second-quarter 2023, second-quarter 2024 and second-quarter 2025.
Subscribers to Industrial Info's GMI Metals & Minerals Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active projects from Peabody.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
