Peabody Energy Chairman And CEO Reports Solid Results At Annual Shareholders
ST. LOUIS, May 8, 2014
ST. LOUIS, May 8, 2014 /PRNewswire/ --Peabody Energy (NYSE: BTU) Chairman and
Chief Executive Officer Gregory H. Boyce today cited a number of 2013
accomplishments and discussed broad market conditions at the company's annual
"2013 was a year of substantial achievement despite market headwinds," Boyce
said. "We matched our record safety performance from 2012, increased
productivity, reduced costs, lowered capital investments, generated solid cash
flow and repaid debt."
While plentiful global supply weighed on coal pricing and coal equities in
2013, Boyce noted that demand continues to grow in the United States and
around the world and fundamentals are expected to further improve. The United
States is experiencing a sharp recovery in coal demand, with coal-fueled
generation rising to 43 percent of electricity generation compared with a low
of 31 percent two years ago. Global metallurgical and thermal coal demand is
expected to set another record in 2014 as both emerging and developed nations
"The world continues to turn to coal as the fastest-growing major fuel, and
coal is the energy source projected to surpass oil in coming years as the
largest global fuel," said Boyce. "Peabody's operational excellence, cost
reduction and capital discipline distinguishes the company, while our superior
people and portfolio provide significant upside as markets improve."
Boyce said coal demand continues to grow, and fundamentals are expected to
improve throughout the year. Highlights from 2013 include:
oA global incidence rate of 1.87 per 200,000 work hours, equaling a record
first set in 2012;
oCost-containment efforts that led to $340 million in savings;
oA 67 percent reduction in capital expenditures;
oOperating cash flows in excess of $700 million that allowed Peabody to
repay more than $200 million in debt; and
oMore than 25 awards for safety, financial performance, environmental
excellence and social responsibility.
Behind these accomplishments is a culture of process improvement, Boyce said.
In Australia, Peabody converted multiple mines from contractor to company
control and upgraded PCI mines acquired in 2011. These actions and others
drove productivity improvement of 27 percent and enabled the company to reduce
per ton operating costs to levels not seen since 2010. In the United States,
Peabody operated the world's most productive coal mine – North Antelope
Rochelle – and increased overall mine productivity 9 percent, achieving the
lowest U.S. operating costs per ton in two years.
He added that Peabody's global platform is well-capitalized, with low
sustaining needs and top-tier assets that are targeted at the high-growth
Pacific Rim region and the lowest cost U.S. coal regions. He cited the
company's status as the largest producer in the low-cost Southern Powder River
Basin and that Peabody Energy is a leading seaborne supplier of metallurgical
and low-vol PCI coals. The company's sizable reserves, strong project pipeline
and trading and brokerage platform support growth as markets strengthen.
"Today, the need for energy access from coal has never been greater," said
Boyce. "Half the world's population lacks access to adequate electricity –
and coal is the only sustainable fuel with the large scale and low cost to
meet the need."
Boyce expanded upon the company's Advanced Energy for Life campaign to build
awareness and support to eliminate global energy poverty, increase access to
low-cost electricity and improve emissions through existing advanced clean
"Going forward, we will need all forms of energy to meet enormous global
demand, yet it is 21st century coal that provides the most compelling path to
providing abundant, affordable energy that drives economic progress and
improves quality of life – while allowing us to achieve our environmental
Peabody Energy is the world's largest private-sector coal company and a global
leader in sustainable mining, energy access 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
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SOURCE Peabody Energy
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