Peabody Energy Corporation (NYSE:BTU) Q1 2023 Earnings Conference Call April 27, 2023 11:00 AM ET
Company Participants
Karla Kimrey – Vice President of Investor Relations
Jim Grech – President and Chief Executive Officer
Mark Spurbeck – Chief Financial Officer
Conference Call Participants
Lucas Pipes – B Riley
Nathan Martin – The Benchmark Company
Katja Jancic – BMO
Michael Dudas – Vertical Research Partners
Operator
Good day, and welcome to the Peabody First Quarter Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded.
I would now like to turn the conference over to Karla Kimrey, Vice President of Investor Relations. Please go ahead.
Karla Kimrey
Good morning, and thank you for joining Peabody’s earnings call for the first quarter of 2023. With me today are President and CEO, Jim Grech; and CFO, Mark Spurbeck. Within the earnings release, you’ll find our statement on forward-looking information as well as a reconciliation of non-GAAP financial measures. We encourage you to consider the risk factors referenced there, along with our public filings with the SEC.
Now, I’ll turn the call over to Jim.
Jim Grech
Thanks, Karla, and good morning, everyone. In the first quarter of 2023, Peabody’s diverse portfolio produced another strong quarter of financial results. For the past 18 months, we have aggressively been de-leveraging our balance sheet and we remain committed to a disciplined approach for capital allocation.
In April, we announced a shareholder return program that will consist of a fixed dividend component, share repurchases and variable dividends. We are starting a program with a heavy weighting towards share repurchases and expected transition to a plan including share repurchases, variable dividends, and fixed dividends.
Before expand on the markets and operations, I would like to thank our global employees for their continued focus on working safely and efficiently. Without the dedication of our talented workforce, we would not be in the strong financial position we are in today.
Now, turning to global coal markets. Global thermal coal prices stabilized in March and recently showed improvement amid supply disruptions in Colombia, South Africa, and ongoing strong demand from India, China, and ASEAN countries. Although shoulder seasoned conditions and healthy fuel stocks are influencing demand elsewhere.
China has ended its unofficial ban of Australian coal imports providing additional demand for Australian thermal coal, which has resulted in Australian import rates of over 4 million tons per month. Domestic coal production and renewable generation have been strong to start the year.