Peabody cuts Centurion's coal sales forecast after a difficult October
The new upper end is below the minimum expected in September. Lower capital spending partly reflects work pushed into the future.
Peabody lowered the fourth-quarter sales forecast for its Centurion steelmaking-coal mine to 300,000 to 500,000 US short tons. Research by Ticker Byline shows that a September investor presentation had expected at least 1 million short tons for the same quarter. The revision puts the mine's production ramp back at the center of the company's outlook.
Centurion sold 580,000 short tons in the third quarter, within the earlier 500,000 to 700,000 forecast. But October production was only 45,000 short tons as difficult geological conditions constrained the mine. The weak production leaves less coal available for the fourth-quarter sales plan.
Lower spending includes deferred work
Peabody now expects about $300 million of capital spending for the year, down from $340 million. Approximately $30 million of the reduction is at Centurion, primarily from deferring Northern-panel development. The deferred work will still require spending in the future. Peabody plans equipment modifications, including a change during the next longwall move, now expected in the third quarter of 2027.
The setback comes as the wider business improved from the second quarter. Consolidated adjusted earnings before interest, taxes, depreciation and amortization rose to $97.5 million from $24.0 million. All four operating segments reported positive adjusted EBITDA.
Peabody reported a $32.8 million loss attributable to common stockholders. Its cash-flow statement showed a $1.4 million operating cash outflow including discontinued operations, while capital additions totaled $59.8 million.
The cash buffer has also narrowed
Cash and cash equivalents were $434.3 million at the end of September, down from $526.3 million in June. Total liquidity was $887 million, a broader measure that includes available credit. The company separately reported $418.4 million of restricted cash and collateral.
The Peabody Energy Corporation company profile tracks the business, its financial position and the outlook.