Peabody posts $777M loss for 2014, narrows fourth-quarter gap

Peabody Energy posted a larger loss in 2014 than it did in 2013, but the St. Louis-based coal company narrowed its fourth-quarter losses compared to last year.

The company reported a net loss of $777.3 million for 2014 when it released its fourth quarter and yearly earnings Tuesday, compared to a net loss of $512 million in 2013. However, Peabody’s net loss of $513 million in the fourth quarter was less than its $561.2 million loss in the fourth quarter of 2013.

The company reported a loss of $1.21 per share for the fourth quarter of 2014, worse then analyst’s expectations of a loss of 35 cents per share.

The coal miner reported 2014 revenues of $6.79 billion, down from $7.01 billion in 2013 and about $8 billion in 2012. It met analyst expectations with revenues of $1.68 billion for the quarter.

During Peabody’s quarterly earnings call, CEO Greg Boyce and COO Glenn Kellow — who, the company announced last week, will succeed the retiring Boyce in May — cited increased rail shipping costs in the U.S., lower natural gas costs and mild weather as some of the reasons that demand for coal has declined.

“The year 2014 was a turbulent year for the coal markets as slowing near-term demand growth resulted in continued coal price declines,” Boyce said. “Looking forward, we see 2015 U.S. coal demand declining 50 to 60 tons due to lower natural gas prices.”


Tags:, , , , , ,

Leave a Reply