Peabody Energy (NYSE: BTU) Chairman And CEO Highlights Global Strength At
Annual Shareholders Meeting
GILLETTE, Wyo., April 29, 2013
GILLETTE, Wyo., April 29, 2013 /PRNewswire/ --Peabody Energy Chairman and
Chief Executive Officer Gregory H. Boyce announced at the company's annual
shareholders meeting that Peabody demonstrated strength and flexibility in
responding to challenging market conditions in 2012.
Held in Gillette, Wyo., the meeting emphasized Peabody's leading position in
the largest and lowest-cost U.S. coal region – Wyoming's Southern Powder River
Basin. In 2012, Peabody shipped nearly 140 million tons of coal from the
Powder River Basin to 90 power plants in 24 states, as well as customers in
Asia, Europe and South America.
"In addition to completing the safest year in Peabody history, we achieved
record revenues, record U.S. Adjusted EBITDA and record Australia volumes,"
Boyce said. "Our team continues to navigate changing markets, deliver safe
low-cost operational performance and pursue cost containment initiatives and
Safety remains the company's core measure of performance, and Peabody
delivered the best global safety results in its history in 2012, with an
incidence rate of 1.82 per 200,000 work hours. This performance is 66 percent
better than the industry average and reflects improvement in every region.
Peabody built on this progress in the first quarter of 2013, achieving a 30
percent safety improvement when compared to the prior-year quarter.
Additional highlights from 2012 include:
oIn Australia, a record 33 million tons sold and integration of a major
oMore than 35 major honors for safety, corporate and environmental
excellence and social responsibility in 2012. Among these accoladesare
the Global Energy Commodity Excellence Award for industry-leading
performance and Mining Magazine's recognition of the North Antelope
Rochelle Mine (NARM) as Mine of the Year, noting NARM's role as the
world's largest and most productive surface operation; and
oTwo Excellence in Surface Coal Mining Reclamation Awards, among the
highest environmental honors presented by the U.S. Department of the
Boyce expanded upon remarks made at meeting, noting that Peabody's reserve
position, diversified global platform, access to infrastructure and future
pipeline of projects all position the company for volume and margin
improvement as markets strengthen. He said the company expects long-term
energy needs to grow amid unprecedented urbanization in Asia.
"Our outlook for 2013 is positive," Boyce concluded. "We expect U.S. coal
demand to grow by 60 to 80 million tons over 2012 levels. Chinese and Indian
coal imports are rising, Chinese steel production is growing, and new coal
generation is being developed around the globe. We benefit from an outstanding
thermal and metallurgical coal portfolio, and our diversity of supply and
depth of market intelligence allow us to manage well through all
Looking ahead, the company has four focus areas in 2013:
oOperational excellence in safety and productivity.
oTight cost management, driven by an active cost containment task force.
oA focus on improving capital efficiency as a means to maximize cash flows
to continue to reduce debt.
oOngoing initiatives to position our global platform to benefit during the
Peabody also is committed to continuing its leadership in sustainable mining
and clean coal solutions, Boyce said. The company participates in multiple
advanced clean coal technology projects and partnerships toward an ultimate
goal of near-zero emissions from coal use. Boyce noted that by mid-century,
five out of every 10 people are likely to still lack adequate access to energy
if global population and energy demand growth continue at the projected pace.
"Economic turmoil, resource scarcity and rising energy costs in recent years
remind us of the essential role that reliable, affordable, accessible energy
from coal plays in human health and welfare," said Boyce. He noted that coal
is the only fuel with the large scale and low cost to address enormous global
energy needs and access to energy is linked with greater longevity, literacy
and a better standard of living. "We believe energy poverty is the greatest
crisis the world confronts and increasing access to all forms of affordable
energy – including coal – is the only response."
Peabody Energy is the world's largest private-sector coal company and a global
leader in sustainable mining and clean coal solutions. The company serves
metallurgical and thermal coal customers in more than 25 countries on six
continents. For further information, go to PeabodyEnergy.com and
SOURCE Peabody Energy
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