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Exhibit 99.1
Investors and Media:
Andy Kellogg & Kory Kutzke
(630) 824-1987
SUNCOKE ENERGY PARTNERS, L.P. ANNOUNCES THIRD QUARTER 2018 RESULTS
| Net income attributable to SXCP was $15.3 million and operating cash flow was $72.6 million in the third quarter 2018 |
| Adjusted EBITDA attributable to SXCP was $53.8 million down $3.6 million versus the prior year period driven primarily by an outage at our Granite City facility |
| Declared third quarter 2018 distribution of $0.40 per unit |
| Reduced debt outstanding by $25 million in the third quarter |
| Revised full-year 2018 Adjusted EBITDA attributable to SXCP guidance range of $210 million to $215 million from the previous range of $215 million to $225 million |
Lisle, Ill. (October 25, 2018) - SunCoke Energy Partners, L.P. (NYSE: SXCP) today reported results for the third quarter 2018, which reflect strong throughput volumes at the companys Convent Marine Terminal and solid performance from Middletown and Haverhill coke facilities, offset by the timing and scope of an outage and unrelated machinery fire at Granite City.
Mike Rippey, President and Chief Executive Officer of SunCoke Energy Partners, L.P. commented, We continue to be pleased with strong operating performance at CMT as our customers continue to leverage our unique capabilities to capitalize on the attractive export market and our Middletown and Haverhill coke facilities continue to perform in line with our expectations.
Granite City began a planned outage during the quarter, in which the scope and duration increased materially versus original estimates. Our analysis revealed that additional improvements would benefit the facility and it was prudent to accelerate the timing of this work. Additionally, as discussed on the companys second quarter earnings call, Granite City experienced a fire on a major piece of equipment which resulted in lost production and lower revenues during the third quarter. The incremental impact of these two events, which was not factored into the companys full-year guidance, is approximately $9 million. As a result, full year 2018 Adjusted EBITDA attributable to SXCP guidance has been adjusted to range between $210 million to $215 million.
Rippey continued, While we are disappointed to revise our full-year 2018 guidance as a result of incremental expense and lower revenue at Granite City, our focus has been, and always will be, on driving operational excellence and maximizing long-term performance at our facilities. Based on the expertise we have built across our fleet, it became a clear decision to increase the scope of the work at Granite City in order to improve the long-term reliability and operational performance of those assets.
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Suncoke Energy Partners, L.P.'s Definitive Proxy Statement (Form DEF 14A) filed after their 2018 10-K Annual Report includes:
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Expansion capital expenditures to acquire andor construct complementary assets to grow our business and to expand existing facilities as well as capital expenditures made to enable the renewal of a coke sales agreement and on which we expect to earn a reasonable return.
The increase was driven by a favorable year-over-year change of approximately $36 million in primary working capital, which is comprised of accounts receivable, inventories and accounts payable, primarily as a result of the timing of coal purchases and the settlement of balances with SunCoke.
While our steelmaking customers continue to operate in an environment that is challenged by global overcapacity, they have benefited from improved steel pricing, favorable trade policies, including U.S. steel tariffs signed into order during the first half of 2018, and solid end market demand.
These coke sales agreements have an average remaining term of approximately seven years and contain pass-through provisions for costs we incur in the cokemaking process, including coal procurement costs subject to meeting contractual coal-to-coke yields, operating and maintenance expenses, costs related to the transportation of coke to our customers, taxes other than income taxes and costs associated with changes in regulation.
During the nine months ended September 30, 2018, Corporate and Other expenses increased $0.8 million to $12.6 million as compared to the same prior year period due to a higher allocation of costs from SunCoke.
Sales and other operating revenue...Read more
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effects of railroad, barge, truck...Read more
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Strong API2 and API5 index...Read more
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At KRT, metallurgical market conditions...Read more
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changes in the marketplace that...Read more
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This measure is not in...Read more
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However, KRT volumes were suppressed...Read more
Financial Statements, Disclosures and Schedules
Inside this 10-Q Quarterly Report
Material Contracts, Statements, Certifications & more
Suncoke Energy Partners, L.P. provided additional information to their SEC Filing as exhibits
Ticker: SXCP
CIK: 1555538
Form Type: 10-Q Quarterly Report
Accession Number: 0001555538-18-000012
Submitted to the SEC: Thu Oct 25 2018 10:48:15 AM EST
Accepted by the SEC: Thu Oct 25 2018
Period: Sunday, September 30, 2018
Industry: Steel Works Blast Furnaces And Rolling Mills Coke Ovens