Peabody final 2021 quarter nets coal giant $1.2B

North Antelope Rochelle Mine in 2017. (Peabody Energy)

GILLETTE, Wyo.Strong market conditions driven by high coal demand for both energy and steel production contributed to Peabody Energy closing out 2021 on a high note with $1.2 billion in fourth-quarter coal sales.

It’s the highest quarterly sale amount seen in 2021 with Peabody ending its fourth and final quarter (4Q2021) with over $1.26 billion in total sales, accounting for more than a third of the company’s entire 2021 revenue stream totaling approximately $3.3 billion.

“Our robust fourth-quarter results further demonstrate the capability of our diverse mine portfolio which continues to benefit from strong market fundamentals driven by the vital necessity for coal to produce reliable energy and steel to fuel the global economy,” Jim Grech, Peabody president and CEO, said in a statement.

Expenses were down and revenues were up this past quarter, per Peabody, which attributes a seven percent decrease in sales, general, and administrative expenses in 4Q2021 to the company’s ongoing cost efficiency efforts.

Revenues at the end of 2021 showed a 72 percent, or $437 million, increase over revenues recorded at the end of 2020, according to Peabody.

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Approximately one-fifth of 4Q2021’s revenues came from PRB operations where mines produced and sold 22.5 million tons of coal for around $247.2 million, per Peabody.

Total annual revenue from PRB operations was down slightly in 2021 from the previous year with Peabody netting $971.5 million from 88.4 million tons sold compared to the $994.8 million from 87.2 million tons sold in 2020.

Seaborn Metallurgical segments led the way in terms of revenue last year, reaping around $337.9 million in coal sales with Seaborn Thermal a close second at $302.2 million, per Peabody.

Strong thermal coal segments are expected to continue as Peabody advances into 2022 with the company anticipating higher demands from coal customers.

Production costs, however, are also expected to increase because of higher royalties, fuel prices, and expenses associated with a projected uptick in production.