Peabody Energy Corp (BTU) 2020 Q4 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Wilpinjong financial statement review conference call. (Operator Instructions) As a reminder, this conference is being recorded today, March 25, 2021.

I would now like to turn the conference over to Mr. Mark Spurbeck. Please go ahead.

Good morning, and thanks for joining today to discuss Wilpinjong's 2020 financial results. In connection with Peabody's recent refinancing transactions, we are required to host a quarterly call on Wilpinjong's results. The Wilpinjong results discussed herein were included in Peabody's consolidated results discussed on our February 4 year-end earnings call. Moving forward, discussion of Wilpinjong stand-alone results will be included with Peabody's normal quarterly earnings calls.

You can reference Wilpinjong's stand-alone financial statements on Peabody's website. We encourage you to consider the risk factors referenced within the financial statements along with our public filings with the SEC.

Let's now turn to Wilpinjong's 2020 financial results. Wilpinjong sold 13.8 million tons at an average realized price of $28 per short ton. Revenues totaled $387 million, which included $239 million from 5.8 million tons of export shipments. The remainder was sold under a long-term domestic contract.

Compared to the prior year, revenues declined $137 million due to lower export pricing and sales mix. Operating costs were approximately $20 per ton. The mine achieved an all-time low for Australian dollar cost per unit of $4.40 for the year, further demonstrating the mine's first decile cost performance among Australian thermal coal mines. Adjusted EBITDA totaled $113 million, which equates to 29% adjusted EBITDA margins.

Peabody and its subsidiaries, including Wilpinjong, generally have intercompany balances to recognize the transfer of and payment for services. In connection with the Peabody refinancing transactions and in line with third-party transactions, the balance of intercompany payables and receivables were forgiven, resulting in an approximate $417 million loss on related party debt extinguishment at Wilpinjong.

Wilpinjong reported income taxes of $22 million. While Wilpinjong is a member of Peabody's consolidated tax group, Peabody allocates income taxes to subsidiaries in amounts that represent each subsidiary's contribution to the group's tax obligation. Primarily due to the loss on related party debt extinguishment, Wilpinjong reported a net loss of $417 million for 2020.

At year-end, Wilpinjong had $107 million of cash and cash equivalents. Operating cash flows for the year totaled $71 million, and the mine spent $22 million on capital expenditures.

As a reminder, the refinancing transactions were not completed until 2021. Therefore, the term loan and notes secured by Wilpinjong were not outstanding at December 31, 2020.

If you have any questions on what we've covered today, please reach out to our Investor Relations department. As noted earlier, beginning with the first quarter 2021, we will post Wilpinjong's stand-alone financial statements on our website at the time of our quarterly earnings release, and we'll cover Wilpinjong results as part of our normal quarterly earnings call.

Thank you for your participation today.

This concludes the Wilpinjong financial statement review. Thank you for participating.