The Peabody Group has reported EBITDA from continuing operations of $US443 million for the 12 months ended March 31, 2000, an increase of 16% over the prior-year period. The company also repaid $US206 million in debt during the year.
"Our focus on cash flow improvement and debt reduction yielded strong results for the year," said Chairman and CEO Irl F. Engelhardt. "Peabody benefited from solid performances from our Australia operations, higher prices in Wyoming and a greater contribution from Black Beauty Coal Company. Our results were also affected by several significant events during an active fourth quarter."
These included an investment of $US6.6 million by Black Beauty Coal Company, 82% owned by Peabody, to increase its ownership interest and obtain control of three Midwestern coal mining affiliates.
Fourth quarter revenues totalled $US658.3 million, compared with $US668.5 million in the prior-year quarter. Full-year revenues rose 15%, to a record $US2.71 billion, as increased contributions from Black Beauty, improved pricing of low-sulfur coal from the Powder River Basin and strong Australian sales offset soft volume and pricing in the Eastern U.S. Coal sales volume totalled 46.0 million tons for the quarter and a record 190.3 million tons for the full year, representing a 6% decline and 8% increase, respectively, from prior-year volumes.
Full-year EBITDA from continuing operations totalled $US443.0 million, a $US62.7 million increase over the prior year. The improvement was driven by increased contributions from Black Beauty and Australia, along with improved pricing in the Powder River Basin.
Highlights for the year were 16% productivity improvement in Australia and 5% in the U.S. and reduced unit-mining costs at 17 of 22 operations that Peabody manages. The company invested $US63 million in acquisitions and $US179 million in capital expenditures. New agreements for coal supplies totalling more than 250 million tons were signed, increasing the coal sales backlog to 1 billion tons. A 55% interest in the Moura Mine in Queensland was purchased and the ownership interest in the Bengalla Mine in New South Wales was increased by 3%, to 40%. A new agreement was signed allowing construction of a 2 million metric tonne mine in New South Wales.
"Looking to the year ahead, management is determined to maintain EBITDA levels year-on-year, and to continue to make significant debt reductions," said Engelhardt. "Our greatest challenge will occur in the first six months, when market conditions are expected to be softest. For the year as a whole, we look to offset these conditions through cost reductions and increased contributions from new operations."
