SunCoke Energy, Inc. reported robust third-quarter 2024 results, with net income attributable to SXC increasing to $30.7 million, up from $7.0 million in the prior year period. Consolidated Adjusted EBITDA also saw a rise to $75.3 million, compared to $65.4 million in Q3 2023, driven by favorable logistics performance and a one-time gain.
A key financial development was the $9.5 million one-time gain from the elimination of the majority of legacy black lung liabilities, resulting from a regulatory exemption from the U.S. Department of Labor. This exemption reduced the black lung benefits accrual on the balance sheet by $45.5 million, which is expected to lower annual legacy expenses and eliminate potential higher collateral requirements.
The company also announced a 20% increase in its quarterly cash dividend, raising it from $0.10 to $0.12 per share, payable on December 2, 2024. Furthermore, SunCoke increased its full-year 2024 Consolidated Adjusted EBITDA guidance range to $260 million - $270 million, reflecting the strong logistics performance and the one-time gain. The Granite City cokemaking contract was extended for six months with an option for an additional six months, and a new barge-to-rail coal handling agreement was executed at the Kanawha River Terminal with a $12 million capital project, expected to commence in Q2 2025.
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