SunCoke Energy Inc (SXC) 2025 Q2 法說會逐字稿

Good day, and welcome to the SunCoke Energy second quarter 2025 earnings conference call. (Operator Instructions)

大家好，歡迎參加 SunCoke Energy 2025 年第二季財報電話會議。（操作員指示）

Please note, this event is being recorded. I would now like to turn the conference over to Shantanu Agrawal, Vice President, Finance and Treasurer. Please go ahead.

請注意，此事件正在被記錄。現在，我想將會議交給財務副總裁兼財務主管 Shantanu Agrawal。請繼續。

Thank you. Good morning, and thank you for joining us this morning to discuss SunCoke Energy's second quarter 2025 results.

謝謝。早安，感謝您今天早上加入我們討論 SunCoke Energy 2025 年第二季的業績。

With me today are Katherine Gates, President and Chief Executive Officer; and Mark Marinko, Senior Vice President and Chief Financial Officer.

今天與我一起出席的還有總裁兼執行長凱瑟琳蓋茲 (Katherine Gates) 和高級副總裁兼財務長馬克馬林科 (Mark Marinko)。

This conference call is being webcast live on the Investor Relations section of our website, and a replay will be available later today. Following management's prepared remarks, we'll open the call for Q&A. If we do not get your questions on the call today, please feel free to reach out to our Investor Relations team.

本次電話會議將在我們網站的投資者關係部分進行網路直播，重播將於今天稍後提供。在管理階層準備好發言後，我們將開始問答環節。如果我們今天在電話中沒有收到您的問題，請隨時聯絡我們的投資者關係團隊。

Before I turn things over to Katherine, let me remind you that the various remarks we make on today's call regarding future expectations constitute forward-looking statements. The cautionary language regarding forward-looking statements in our SEC filings apply to the remarks we make today. These documents are available on our website as are reconciliations to non-GAAP financial measures discussed on today's call.

在我將事情交給凱瑟琳之前，請允許我提醒您，我們在今天的電話會議上就未來預期所做的各種評論均構成前瞻性陳述。我們向美國證券交易委員會提交的文件中有關前瞻性陳述的警告性語言也適用於我們今天所發表的言論。這些文件可在我們的網站上查閱，也可在今天的電話會議上討論與非公認會計準則財務指標的對帳表。

With that, I'll now turn things over to Katherine.

好了，現在我會把事情交給凱瑟琳。

Thanks, Shantanu. Good morning, and thank you for joining us on today's call. This morning, we announced SunCoke Energy's second quarter results. I want to share a few highlights before turning it over to Mark to discuss the results in detail.

謝謝，Shantanu。早安，感謝您參加今天的電話會議。今天上午，我們公佈了 SunCoke Energy 第二季的業績。在交給馬克詳細討論結果之前，我想分享一些亮點。

We delivered Q2 2025 consolidated adjusted EBITDA of $43.6 million, driven by the timing and mix of contract and spot coke sales as well as lower volumes at CMT.

受合約和現貨焦炭銷售時間和組合以及 CMT 銷售下降的影響，我們實現了 2025 年第二季合併調整後 EBITDA 4,360 萬美元。

During the quarter, we announced the acquisition of Phoenix Global for $325 million. We are happy to share that we received the necessary regulatory approvals faster than anticipated and now expect to close on August 1.

本季度，我們宣布以 3.25 億美元收購 Phoenix Global。我們很高興地告訴大家，我們比預期更快地獲得了必要的監管批准，預計將於 8 月 1 日完成。

Additionally, we amended and extended our revolving credit facility originally due June 2026 during the month of July. The covenants are similar to the previous agreement, and it is now maturing in July 2030.

此外，我們在 7 月修改並延長了原定於 2026 年 6 月到期的循環信貸額度。該協議的契約與先前的協議類似，將於 2030 年 7 月到期。

Earlier today, we also announced a $0.12 per share dividend payable to shareholders on September 2, 2025. From a balance sheet perspective, we ended the second quarter with a strong liquidity position of $536.2 million. I'd like to take this opportunity to review the fundamentals of the Phoenix acquisition.

今天早些時候，我們也宣布將於 2025 年 9 月 2 日向股東派發每股 0.12 美元的股息。從資產負債表的角度來看，我們在第二季結束時擁有 5.362 億美元的強勁流動性。我想藉此機會回顧一下菲尼克斯收購案的基本情況。

Let's turn to Slide 4. Phoenix Global is a leading provider of mission-critical services to major steel producing companies. SunCoke will purchase 100% of the common units of Phoenix for $325 million on a cash-free, debt-free basis, representing an acquisition multiple of approximately 5.4 times on a March 31, 2025, last 12 months adjusted EBITDA of $61 million.

讓我們翻到幻燈片 4。Phoenix Global 是一家為主要鋼鐵生產公司提供關鍵任務服務的領導供應商。SunCoke 將以無現金、無債務的方式，以 3.25 億美元收購 Phoenix 100% 的普通股，相當於截至 2025 年 3 月 31 日、過去 12 個月調整後 EBITDA 6100 萬美元的收購倍數約為 5.4 倍。

This transaction is expected to be immediately accretive for SunCoke. We will fund the purchase through a combination of cash on hand and borrowing on our amended and extended revolver, which is fully undrawn with $325 million of borrowing capacity. We expect to recognize between approximately $5 million and $10 million in annual synergies from this transaction.

預計此交易將立即為 SunCoke 帶來增值。我們將透過庫存現金和經修訂和延長的循環信貸額度來為此次收購提供資金，該循環信貸額度尚未提取，擁有 3.25 億美元的借貸能力。我們預計此交易每年將帶來約 500 萬至 1,000 萬美元的綜效。

After closing, we will plan to host investor conferences where we will share updated guidance for SunCoke, including Phoenix.

交易結束後，我們計劃舉辦投資者會議，分享 SunCoke（包括 Phoenix）的最新指導。

Turning to Slide 5 to revisit the transaction benefits to SunCoke. Phoenix is an excellent strategic fit with the core elements of our business, namely customers, capabilities and contracts. With the addition of these operations, SunCoke's reach will now extend to new industrial customers including electric arc furnace operators that produce carbon steel and stainless steel.

翻到投影片 5 重新討論交易為 SunCoke 帶來的好處。Phoenix 與我們業務的核心要素（即客戶、能力和合約）具有極佳的策略契合度。隨著這些業務的加入，SunCoke 的業務範圍將擴展到新的工業客戶，包括生產碳鋼和不銹鋼的電弧爐營運商。

Phoenix's global footprint will add to our existing Brazil footprint as well as select international markets. Phoenix's operations provide high-value site-based services that are mission-critical to operational efficiency and reliability for steel mills.

Phoenix 的全球業務將擴大我們現有的巴西業務以及精選的國際市場。菲尼克斯的業務提供高價值的現場服務，這些服務對於鋼廠的運作效率和可靠性至關重要。

SunCoke has a reputation as a critical partner in the steel value chain and as a reliable provider of high-quality industrial services through our Logistics business. Similar to SunCoke, Phoenix's contracts are long term in nature with contractually guaranteed fixed revenue and pass-through components.

SunCoke 是鋼鐵價值鏈中的重要合作夥伴，也是透過我們的物流業務提供高品質工業服務的可靠供應商。與 SunCoke 類似，Phoenix 的合約也是長期合同，具有合約保證的固定收入和轉嫁部分。

Additionally, under its current contracts, Phoenix does not take ownership of major consumables, reducing exposure to commodity price volatility. Phoenix offers a well-capitalized asset portfolio, having invested approximately $75 million since June 2023 on new equipment or the refurbishment of existing equipment.

此外，根據現有合同，Phoenix 並不擁有主要消耗品的所有權，從而減少了受商品價格波動的影響。Phoenix 擁有資本充足的資產組合，自 2023 年 6 月以來已投資約 7,500 萬美元用於新設備或現有設備的翻新。

New customers and new markets provide multiple paths for future organic growth. By leveraging SunCoke's strong financial position and operational excellence, we will build upon Phoenix's success to better serve our existing and new customers.

新客戶和新市場為未來的有機成長提供了多種途徑。透過利用 SunCoke 強大的財務狀況和卓越的營運能力，我們將在 Phoenix 的成功基礎上更好地服務我們的現有客戶和新客戶。

Following the closing of the transaction, we expect Phoenix's operations will be combined with our Logistics segment to form a new Industrial Services segment. We are pleased to have a strong operator within SunCoke to lead the new operations in addition to our engineering and technical teams.

交易完成後，我們預計 Phoenix 的業務將與我們的物流部門合併，形成一個新的工業服務部門。我們很高興除了工程和技術團隊之外，SunCoke 內部還有一位強大的營運人員來領導新的營運。

He will be joined by certain Phoenix employees whose knowledge and experience will be beneficial to the successful integration. We are excited to welcome Phoenix's team members to the SunCoke family, as we build on the strong foundation set by the business in recent years.

菲尼克斯的一些員工也將加入他的團隊，他們的知識和經驗將有助於成功整合。我們非常高興地歡迎 Phoenix 的團隊成員加入 SunCoke 大家庭，我們將在近年來業務奠定的堅實基礎上繼續發展。

With that, I'll turn it over to Mark to review our second quarter earnings in detail. Mark?

接下來，我將把任務交給馬克，讓他詳細回顧我們第二季的收益。標記？

Thanks, Katherine. Turning to slide 6, net income attributable to SunCoke was $0.02 per share in the 2nd quarter of 2025, down $0.23 versus the prior year period. The decrease was primarily driven by the timing and mix of lower contract Coke sales, coupled with lower economics from the Granite City contract extension in the domestic Coke segment. Additionally, CMT volumes in the logistics segment were lower due to market conditions.

謝謝，凱瑟琳。轉到投影片 6，2025 年第二季歸屬於 SunCoke 的淨收入為每股 0.02 美元，比去年同期下降 0.23 美元。下降的主要原因是可口可樂合約銷售額下降的時間和組合，加上國內可口可樂部門花崗岩城合約延期帶來的經濟效益下降。此外，由於市場狀況，物流領域的 CMT 交易量較低。

Finally, transaction costs of $5.2 million related to the acquisition of Phoenix Global also impacted earnings per share. Consolidated adjusted EBITDA for the second quarter of 2025 was $43.6 million compared to $63.5 million in the prior year period.

最後，與收購 Phoenix Global 相關的 520 萬美元交易成本也影響了每股盈餘。2025 年第二季合併調整後 EBITDA 為 4,360 萬美元，去年同期為 6,350 萬美元。

The decrease and adjusted EBITDA was primarily driven by the timing and mix of lower contract Coke sales and unfavorable economics on the granted City contract extension in the Coke segment. And lower transloading volumes at CNT in the logistics segment, partially offset by lower legacy black lung expenses in corporate and other.

EBITDA 的下降和調整主要是由於可口可樂合約銷售額下降的時間和組合，以及可口可樂部門授予城市合約延期的不利經濟狀況所致。物流部門 CNT 的轉運量較低，但企業和其他部門的遺留黑肺病費用較低，部分抵消了這種影響。

Moving to slide 7 to discuss our domestic coke business performance in detail. Second quarter domestic coke adjusted EBITDA was $40.5 million and Coke's sales volumes were 943,000 tons. The decrease in adjusted EBITDA as compared to the prior year period was primarily driven by the change in mix of contract and spot coke sales at Haverhill. Additionally, spot Coke sales margins are significantly lower than the contract Coke sales margins due to the current challenging market conditions.

前往投影片 7，詳細討論我們的國內焦炭業務表現。第二季國內焦炭調整後EBITDA為4,050萬美元，可口可樂銷售量為94.3萬噸。與去年同期相比，調整後的 EBITDA 有所下降，主要是由於 Haverhill 的合約和現貨焦炭銷售組合發生變化。此外，由於當前嚴峻的市場情勢，現貨可樂銷售利潤率明顯低於合約可樂銷售利潤率。

Lower economics and volumes at Granite City from the contract extension also impacted domestic coke results. We believe the second quarter to be the trough of 2025, and with higher contract Coke sales expected in the second half of the year, we are reaffirming our domestic coke adjusted EBITDA guidance range of $185 million to $192 million.

合約延長導致花崗岩城的經濟效益和產量下降，也影響了國內焦炭的表現。我們認為第二季將是 2025 年的低谷，並且由於預計下半年可口可樂合約銷售額將增加，我們重申國內可口可樂調整後的 EBITDA 指引範圍為 1.85 億美元至 1.92 億美元。

Now moving on to slide 8 to discuss our logistics business. Our logistics business generated $7.7 million of adjusted EBITDA in the second quarter of 2025, and our terminals handle combined throughput volumes of [4.8 million tons]. The decrease in adjust EBITDA was primarily driven by lower transloading volumes at CMT due to tepid market conditions.

現在轉到投影片 8 來討論我們的物流業務。我們的物流業務在 2025 年第二季產生了 770 萬美元的調整後 EBITDA，我們的碼頭總吞吐量達到[480萬噸]調整後 EBITDA 的下降主要是因為市場行情低迷導致 CMT 的轉運量下降。

Our previously announced barge unloading capital expansion project at KRT has been completed and is operating. We expect to see benefits from the new take or pay coal handling agreement starting in the third quarter and reaffirm our full year logistics adjusted EBITDA guidance range of $45 million to $50 million.

我們先前宣布的KRT駁船卸貨資本擴建計畫已經完工並投入營運。我們預計從第三季開始，新的照付不議煤炭處理協議將帶來效益，並重申我們全年物流調整後的 EBITDA 指引範圍為 4,500 萬美元至 5,000 萬美元。

Now turning to slide 9 to discuss our liquidity position for Q2. SunCoke ended the second quarter with a cash balance of $186.2 million and a fully undrawn revolver of $350 million. Net cash provided by operating activities was $17.5 million and was impacted by income tax and interest payments, as well as $5.2 million in transaction costs.

現在翻到第 9 張投影片來討論我們第二季的流動性狀況。SunCoke 第二季結束時的現金餘額為 1.862 億美元，未提領的循環信貸額為 3.5 億美元。經營活動提供的淨現金為 1,750 萬美元，受到所得稅和利息支付以及 520 萬美元交易成本的影響。

We spent $12.6 million on CapEx and paid $10.2 million in dividends at the rate of $0.12 per share this quarter. In total, we ended the quarter with a strong liquidity position of $536.2 million. Our free cash flow guidance has changed. As a result of the transaction costs related to the Phoenix acquisition, extension of the revolving credit facility, and the new tax bill that was recently passed.

本季我們的資本支出為 1,260 萬美元，每股股息為 0.12 美元，股息金額為 1,020 萬美元。總體而言，本季結束時我們的流動性狀況強勁，達到 5.362 億美元。我們的自由現金流指導已經改變。這是由於與 Phoenix 收購、循環信貸額度的延長以及最近通過的新稅法相關的交易成本造成的。

We did not previously include transaction or debt issuance costs in our free cash flow guidance, but we now expect to incur between [$12 million and $14 million] dollars related to these transactions during the year. Additionally, as a result of changes in tax laws, we're now expecting our cash taxes to be between $5 million and $9 million dollars.

我們之前沒有將交易或債務發行成本納入我們的自由現金流指引中，但現在我們預計今年與這些交易相關的費用將在[1200萬美元至1400萬美元]之間。此外，由於稅法的變化，我們預計現金稅將在 500 萬美元至 900 萬美元之間。

We have also lowered our CapEx guidance to approximately $60 million during the year. We now expect our free cash flow guidance to be between $103 million and $118 million. Our operating cash flow guidance is unchanged.

我們也將本年度的資本支出預期下調至約 6,000 萬美元。我們現在預計我們的自由現金流指引在 1.03 億美元至 1.18 億美元之間。我們的經營現金流指引維持不變。

With that, I will turn it back over to Katherine.

說完這些，我就把麥克風交還給凱瑟琳。

Thanks, Mark. Wrapping up on slide 10. The acquisition of Phoenix is a result of SunCoke's disciplined pursuit of profitable growth to reward long-term shareholders. SunCoke is well known for our best-in-class safety, advanced technology, operational discipline, and strong financial position.

謝謝，馬克。總結投影片 10。收購 Phoenix 是 SunCoke 嚴格追求獲利成長以回報長期股東的結果。SunCoke 以其一流的安全性、先進的技術、嚴格的營運紀律和強大的財務狀況而聞名。

We remain focused on safely executing against our operating and capital plan and maintaining the strength of our core businesses while working to integrate Phoenix's operations. Phoenix is a service provider of choice for steelmakers, and we look forward to continuously engaging with their customers to find new opportunities to expand the scope of services provided, as well as enter into new contracts at other sites.

我們將繼續專注於安全執行我們的營運和資本計劃，並在努力整合 Phoenix 的業務的同時保持核心業務的實力。Phoenix 是鋼鐵製造商的首選服務提供商，我們期待不斷與他們的客戶合作，尋找新的機會擴大所提供的服務範圍，並在其他地點簽訂新的合約。

As always, we take a balanced yet opportunistic approach to capital allocation. We continuously evaluate the capital needs of the business, our capital structure, and the need to reward our shareholders, and we'll make capital allocation decisions accordingly.

像往常一樣，我們採取平衡又投機取巧的方式進行資本配置。我們不斷評估業務的資本需求、資本結構以及回報股東的需要，並據此做出資本配置決策。

Finally, we see improvement in both logistics and domestic coke in the second half of the year, and we are reaffirming our full year consolidated adjusted EBITDA guidance range of $210 million to $225 million. With that, let's go ahead and open up the call for Q&A.

最後，我們看到下半年物流和國內焦炭均有所改善，我們重申全年合併調整後 EBITDA 指引範圍為 2.1 億美元至 2.25 億美元。好了，讓我們開始問答環節。

(Operator Instructions)

（操作員指示）

Nick Giles, B. Riley Securities.

尼克吉爾斯 (Nick Giles)，B. Riley 證券。

Thank you, operator, and good morning, everyone. This is Henry Hurl on for Nick Giles. So, to start off, you reaffirm your annual guidance on math implies roughly 22% increase in quarterly EBITDA for the remainder of the year to reach the low end of your guidance at $210 million. So, my question is, can you walk us through the drivers of the improvement from here? And what are your assumptions around Coke sales volumes?

謝謝接線員，大家早安。這是亨利·赫爾 (Henry Hurl) 為尼克·吉爾斯 (Nick Giles) 表演的。因此，首先，您重申您的年度數學指導意味著今年剩餘時間的季度 EBITDA 將增長約 22%，達到您的指導低端 2.1 億美元。所以，我的問題是，您能向我們介紹現在改進的驅動因素嗎？您對可口可樂的銷售有何預期？

Sure, Sure, Henry. Thanks for the question. So as we talked about, if you look at our Q1 Domestic Coke EBITDA per ton, it was $55. And our Q2 Domestic Coke adjusted EBITDA per ton is around $42 a ton, right? And if you take the average of those 2, we are right in the range of $46 to $48, that is kind of our annual guidance.

當然，當然，亨利。謝謝你的提問。正如我們所討論的，如果你看看我們第一季國內焦炭每噸的 EBITDA，它是 55 美元。我們第二季國內可樂調整後的每噸 EBITDA 約為每噸 42 美元，對嗎？如果取這兩個數字的平均值，我們的預期價格就在 46 美元到 48 美元之間，這就是我們的年度指導價。

So in Q3 and Q4 or the second half of the year, we expect to kind of get back to our average full year EBITDA per ton range where the mix -- it was all about the mix, that's why we are talking about the mix between contract and spot sales, right? In the Q1, we were very heavy on the contract side; in Q2, we were very heavy on the spot side.

因此，在第三季和第四季或下半年，我們預計將回到平均全年每噸 EBITDA 範圍，其中混合 - 這完全是關於混合，這就是我們談論合約和現貨銷售之間的混合的原因，對嗎？第一季度，我們以合約為主；第二季度，我們以現貨為主。

So in Q3 and Q4, this will kind of become normalized and will have roughly 2 million to 2.1 million tons of coke sales in the second half, getting us closer to the 4 million tons guidance of the total coke sales, with the average sales -- average adjusted EBITDA margin of $46 to $48 a ton. So that's kind of on the coke side.

因此，在第三季和第四季，這種情況將會正常化，下半年焦炭銷量將達到約 200 萬至 210 萬噸，使我們更接近焦炭總銷量 400 萬噸的指導目標，平均銷售額——平均調整後的 EBITDA 利潤率為每噸 46 美元至 48 美元。這有點像可口可樂。

On the Logistics side, we saw surprisingly lower volumes in May and June at CMT. And we are already seeing those volumes get picked up in July. They were a couple of shipments in June that did not -- the timing of the ship kind of shifted to July.

在物流方面，我們發現 CMT 5 月和 6 月的物流量意外下降。我們已經看到七月份的交易量有所回升。六月有幾批貨物沒有出貨－出貨時間改到了七月。

So, we're going to pick that up in Q3. So we'll go back to our normal run rate EBITDA at -- for Logistics as a whole in the second half. And that's how we are getting to our full year adjusted EBITDA guidance range of $210 million to $225 million.

因此，我們將在第三季解決這個問題。因此，下半年我們將恢復整個物流行業的正常運作率 EBITDA。這就是我們全年調整後 EBITDA 預期範圍達到 2.1 億美元至 2.25 億美元的方式。

Understood. And then could you also talk about the macro drivers of Phoenix Global? So I understand you have a large share of fixed and contracted revenues in place. I'm hoping to get more color on what moves the needle in the long term? Thanks.

明白了。那麼，您能談談 Phoenix Global 的宏觀驅動因素嗎？因此，我知道您擁有很大一部分固定收入和合約收入。我希望能夠更詳細地了解長期內哪些因素會推動這項進程？謝謝。

Sure. So I think the short answer to your question is that we'll have a lot more to say on Phoenix when we go out and do our Investor Days and roadshow following the close. As I've said, we're going to be closing on August 1, and then we'll be working through opening balance sheet, taxes, some other valuation work. So we're going through that process now.

當然。所以我認為對你的問題的簡短回答是，當我們在收盤後出去進行投資者日和路演時，我們會對 Phoenix 有更多要說的。正如我所說，我們將於 8 月 1 日結束交易，然後我們將處理期初資產負債表、稅務和其他一些估值工作。所以我們現在正在經歷這個過程。

I think what I can say in terms of drivers going forward is that we're very excited about having the EAF exposure, which really diversifies our customer base. And as I said on our call when we signed, I think it's very, very critical to us that we use this as a platform for organic growth.

我認為，就未來的驅動因素而言，我們可以說的是，我們對 EAF 的曝光感到非常興奮，這確實使我們的客戶群多樣化。正如我在簽約時電話中所說的那樣，我認為將其用作有機成長的平台對我們來說非常關鍵。

So when we think about drivers, we see opportunities with our technical and our engineering teams to look to the customers and expand the suite of services that we're providing at sites where we're already operating as well as looking to new sites to bring on new business.

因此，當我們考慮驅動因素時，我們看到了技術和工程團隊的機會，他們可以專注於客戶，擴展我們在現有營運站點提供的服務套件，並尋找新站點來開展新業務。

What we said when we signed is that Phoenix had a last 12 months trailing adjusted EBITDA of about $61 million and what I can say today is that, that business, despite some of the cyclicality and some of the challenges in the steel sector right now that, that is still not an unreasonable number to put out there as you think ahead to Phoenix.

我們在簽約時說過，Phoenix 過去 12 個月的調整後 EBITDA 約為 6100 萬美元，而我今天可以說的是，儘管目前鋼鐵行業存在一些週期性和挑戰，但當你展望 Phoenix 時，這仍然不是一個不合理的數字。

So, we feel good about the business today and the foundation and then our opportunity to expand it, bringing our operational excellence and our engineering and technical expertise.

因此，我們對目前的業務和基礎感到滿意，並有機會擴大業務，帶來卓越的營運和工程技術專業知識。

Thanks, I appreciate the color there. And then one more for me. Could you also talk about the recent conversations with your largest customer? And if there is any potential for renewal of the Haverhill contract? Or any other color on how to think about your contracts that are rolling off this year and the split between contracted versus blast coke?

謝謝，我很欣賞那裡的顏色。然後我再加一個。您能談談最近與您最大客戶的對話嗎？是否有可能續簽 Haverhill 合約？或者關於如何看待今年到期的合約以及合約焦炭與高爐焦炭之間的分割，還有其他什麼說法嗎？

Yeah, absolutely. Frankly, we were extremely surprised by the comments on the Cliffs earnings call, given that we are in active discussions with Cliffs on contract renewal.

是的，絕對是。坦白說，考慮到我們正在與 Cliffs 就續約事宜進行積極討論，我們對 Cliffs 財報電話會議上的評論感到非常驚訝。

As we said back in January, we knew that Cliffs did not need more coke in 2025 and that's why we announced in January that we were essentially sold out, even though the pricing in the spot market is not what we wanted it to be, but we sold out and we sold into the spot market knowing that Cliffs would not need more coke from us in 2025. So that is unchanged. But at the same time, we were continuing contract discussions with Cliffs, and we are continuing those discussions with them today.

正如我們在一月份所說的那樣，我們知道 Cliffs 在 2025 年不需要更多的焦炭，這就是為什麼我們在一月份宣布我們基本上已經售罄，儘管現貨市場的定價不是我們想要的，但我們還是賣光了，我們賣到了現貨市場，因為我們知道 Cliffs 在 2025 年不需要我們提供更多的焦炭。所以這一點沒有改變。但與此同時，我們正在繼續與 Cliffs 進行合約談判，今天我們仍在繼續與他們進行這些談判。

In terms of specific detail on volumes, et cetera, as you know, we don't talk about the specifics of our contract negotiations with our customers, so I can't really say more than that other than that we are in active discussions with them.

至於數量等具體細節，如您所知，我們不會與客戶談論合約談判的具體細節，因此除了我們正在與他們進行積極討論之外，我無法透露更多。

Okay, thanks for that and to you and your team continue best of luck.

好的，謝謝你，祝你和你的團隊好運。

Thank you.

謝謝。

Nathan Martin with The Benchmark Company.

基準公司 (The Benchmark Company) 的 Nathan Martin。

Thanks, operator. Good morning, everyone. Maybe just following up on that last line of questioning. I think you said surprised maybe by some of the comments Cliffs made. They indicated they've got plenty of internal coke production post the Stelco acquisition that don't need any third party coke kind of going forward.

謝謝，接線生。大家早安。也許只是繼續追問最後那個問題。我想您可能對 Cliffs 的一些評論感到驚訝。他們表示，在收購 Stelco 之後，他們已經擁有大量內部焦炭產量，不需要任何第三方焦炭。

If that's the case, like how do you guys go about planning another long-term contracts for that production in Haverhill? Is it a case where whoever Stelco was selling to previously could it be a potential option? Or could the shift to Cliffs using more internal coke lead to a balanced disruption in the market that needs to be addressed with supply curtailments?

如果是這樣的話，你們如何為哈弗希爾的該作品規劃另一份長期合約？是否無論 Stelco 之前向誰出售產品，這都可能是潛在的選擇？或者，轉向使用更多內部焦炭是否會導致市場平衡混亂，需要透過削減供應來解決？

Sure. I mean, I think just the starting point is, well, obviously, we continue to be in active discussions with Cliffs. But we have also and, you've seen this over time, we've looked for ways to profitably sell our coke when we are not selling on a long-term contract basis.

當然。我的意思是，我認為起點顯然是，我們將繼續與 Cliffs 進行積極的討論。但我們也一直在尋找方法，當我們不以長期合約的方式銷售可樂時，我們也一直在尋找盈利的方法，這一點你們已經看到了。

So whether that is selling foundry and selling more foundry going forward, that's certainly a very profitable avenue for us, and we've continued to grow our market share in the foundry market.

因此，無論是出售代工產品還是未來出售更多代工產品，這對我們來說無疑是一條非常有利可圖的途徑，而且我們在代工市場的份額也在不斷增長。

We would also look to profitably sell our blast coke to other customers. So while we obviously can't get into any sort of discussions on that front, we've been able to profitably sell our blast coke even at these depressed prices, selling into North America. We would continue to look to sell into the seaborne market if that was profitable. So that will continue to be our focus just as it has been in the past years.

我們也希望將我們的高爐焦炭以有利可圖的方式賣給其他客戶。因此，雖然我們顯然無法就此進行任何形式的討論，但即使在價格低迷的情況下，我們仍然能夠盈利地銷售我們的高爐焦炭，並將其銷往北美。如果有利可圖的話，我們將繼續尋求向海運市場銷售。因此，正如過去幾年一樣，這將繼續成為我們的重點。

I appreciate that, Katherine. Any thoughts like does this potentially upset supply/demand balance here in North America or not necessarily, if they continue or start using more internal coke?

我很感激，凱瑟琳。如果他們繼續或開始使​​用更多的內部焦炭，這是否可能會破壞北美的供需平衡？

Well, I think as we've said before, there is a volume of coke that is needed for the volume of steel that's being produced. So if, for example, Cliffs is now using more of the Stelco coke, Stelco coke that was being used by another customer, as you pointed out before, would be a customer that we would pursue going forward. So from an overall kind of supply/demand balance, we would understand that as being there today and we would try to take advantage of that if things were moving.

嗯，我認為正如我們之前所說的，生產多少噸鋼就需要多少焦炭。因此，例如，如果 Cliffs 現在使用更多的 Stelco 焦炭，那麼正如您之前指出的那樣，另一個客戶正在使用的 Stelco 焦炭將是我們未來會追求的客戶。因此，從整體的供需平衡來看，我們可以理解目前的情況，如果情況有所變化，我們會嘗試利用這一點。

And Nate, I would want to add a little bit. This is Shantanu. I mean like if they're running at full capacity, I think the question is more on the Cliffs side. If there is a capacity rationalization permanently on their side on one of the blast furnaces, that definitely disrupts the supply/demand balance of coke, right?

內特，我想補充一點。這是 Shantanu。我的意思是，如果他們滿載運轉，我認為問題更多地出在 Cliffs 方面。如果他們對其中一座高爐進行永久性的產能合理化，那肯定會破壞焦炭的供需平衡，對嗎？

Then the structure looks very different. In the long run, if one of the blast furnaces, which have been running for a longer time goes down, then yes, it definitely disturbs the supply/demand balance of coke within Canada and the U.S and that makes it a little bit challenging for us from the contract perspective, right?

那麼結構看起來就非常不同了。從長遠來看，如果其中一座運行時間較長的高爐發生故障，那麼這肯定會擾亂加拿大和美國焦炭的供需平衡，從合約角度來看，這對我們來說有點挑戰，對嗎？

But if the assumption is that they continue running the blast furnaces, which they have been running and their demand stays the same, as Katherine mentioned, there is demand for that coke to go there.

但如果假設他們繼續運行高爐（他們一直在運行），並且需求保持不變，正如凱瑟琳提到的那樣，那麼對焦炭就有需求。

Got it, Shantanu. I appreciate that. Maybe shifting to the Logistics business. Again, you called out the weakness at CMT. Was that mainly coal or was that any other products there first? And then how do you view kind of export coal demand over the next few quarters? Are you guys assuming any benefit at all from price adjustment given where the indices are today?

明白了，Shantanu。我很感激。也許轉向物流業務。您再次指出了 CMT 的弱點。那裡主要是煤炭嗎？還是最初還有其他產品？那麼您如何看待未來幾季的出口煤炭需求？考慮到今天的指數水平，你們認為價格調整會帶來任何好處嗎？

Well, in terms of products, we move products other than coal through CMT, including iron ore and including pet coke. So there is a mix of products there, but the vast majority of the volumes there are coal for export. We have seen higher domestic pricing and higher demand, as we kind of look at the market today.

嗯，就產品而言，我們透過 CMT 運輸煤炭以外的產品，包括鐵礦石和石油焦。因此，那裡的產品種類繁多，但絕大多數都是用於出口的煤炭。從現今的市場來看，我們看到國內價格上漲，需求增加。

And so that higher demand domestically can impact volumes being shipped internationally just based on that pricing. But at the same time, as Shantanu mentioned earlier, we look at the volumes that we're shipping in July and we look at what we have in our plan for the balance of the year, and we're reaffirming our Logistics guidance based on what we see going forward. We are comfortable with that.

因此，僅根據定價，國內需求的增加就會影響國際運輸量。但與此同時，正如 Shantanu 之前提到的，我們會查看 7 月份的發貨量，並查看我們今年剩餘時間的計劃，並根據我們對未來情況的觀察重申我們的物流指導。我們對此感到滿意。

In terms of any sort of price adjustment mechanism, we have not had a price adjustment thus far under the new contract, and we didn't contemplate that in our guidance for 2025.

就任何類型的價格調整機製而言，根據新合同，我們迄今為止尚未進行價格調整，並且我們在 2025 年的指導中也沒有考慮到這一點。

Got it. That's helpful, Katherine. And then just back to the guidance for a second. I know you reiterated your full year adjusted EBITDA guidance for the segment. But I don't think I saw any update to the volume guidance. So should we assume you still feel good about handling, I think it was around 22.9 million tons for the full year?

知道了。這很有幫助，凱瑟琳。然後再回到指導上來。我知道您重申了該部門全年調整後的 EBITDA 指引。但我認為我沒有看到任何關於交易量指導的更新。那麼我們是否應該假設您對處理量仍然感到滿意，我認為全年約為 2290 萬噸？

And if so is that increase in tonnage here in the second half versus the first half mainly expected to come from the KRT expansion?

如果是這樣，那麼下半年與上半年相比，噸位的成長是否主要預期來自 KRT 的擴張？

That's right, yes.

沒錯，是的。

Okay. Perfect. Maybe just one final one. Again, congratulations on successfully amending and extending your revolver. Obviously, capacity did come down a little bit to 325 million from 350 million. I know you previously said, I think you expected to borrow about $230 million on the revolver for Phoenix. That lower capacity, does that impact your plans at all there for financing and then does it still leave enough room to continue pursuing the GPI project?

好的。完美的。也許只是最後一個。再次恭喜您成功修改並延長您的左輪手槍。顯然，產能確實從 3.5 億略微下降至 3.25 億。我知道您之前說過，我認為您預計將為菲尼克斯的循環信貸借款約 2.3 億美元。產能較低是否會對您的融資計畫產生影響？是否還有足夠的空間繼續推進 GPI 專案？

Yeah, so Nate, I mean, actually, our borrowing amount for the acquisition is lower. It's closer to $200 million to $210 million on the revolver being more -- having more cash available on the balance sheet. So we're using that.

是的，內特，我的意思是，實際上，我們用於收購的借款金額較低。循環信貸額度接近 2 億至 2.1 億美元，資產負債表上可用現金較多。所以我們正在使用它。

And then that leaves us more than enough capacity to kind of work through the working capital changes. As you know, we have been undrawn on the revolver for like at least a couple of years. So that leaves us enough capacity for our working capital day-to-day work.

這樣我們就有足夠的能力來解決營運資金變動問題。如你所知，我們至少有幾年沒有使用左輪手槍了。這樣我們才有足夠的能力來處理日常營運資金工作。

On the GPI side, now that we have done the Phoenix acquisition, if we do the GPI project, that will kind of lead us into a separate borrowing and it will be some sort of term loan or a note or something like that. So that will be a separate financing deal when we get into the GPI project.

在 GPI 方面，既然我們已經完成了 Phoenix 的收購，如果我們開展 GPI 項目，那將會引導我們進入單獨的借貸階段，這將是某種定期貸款或票據或類似的東西。因此，當我們進入 GPI 專案時，這將是一項單獨的融資交易。

Makes sense, Shantanu. And I guess I should just go ahead and ask, are there any updates on that GPI project? Any additional thoughts or discussions you guys are having with Nippon at this point?

有道理，Shantanu。我想我應該繼續問，GPI 專案有任何更新嗎？目前你們對 Nippon 還有什麼其他想法或討論嗎？

So we are in active discussions with U.S. Steel. I guess, at this point, we would say US Steel because it is truly US Steel with Nippon, but we are in active discussions, but I don't have anything to share at this point.

因此，我們正在與美國鋼鐵公司進行積極討論。我想，在這一點上，我們會說美國鋼鐵公司，因為這確實是美國鋼鐵公司與新日鐵公司的合作，但我們正在進行積極的討論，但目前我還沒有什麼可以分享的。

Got it. I'll leave it there. I appreciate the time, Katherine and Shantanu and best of luck in the second half.

知道了。我就把它留在那裡。我很感謝凱瑟琳和山塔努的時間，並祝她們下半場好運。

Thank you.

謝謝。

This concludes our question-and-answer session. I would like to turn the conference back over to Katherine Gates for any closing remarks. Please go ahead.

我們的問答環節到此結束。我想將會議交還給凱瑟琳蓋茨，請她做閉幕發言。請繼續。

Thank you all again for joining us this morning and for your continued interest in SunCoke. We look forward to announcing the completion of the Phoenix Global acquisition. Let's continue to work safely today and every day.

再次感謝大家今天早上的參加以及對 SunCoke 的持續關注。我們期待宣布 Phoenix Global 收購的完成。讓我們今天以及每一天繼續安全地工作。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。