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Console Power (NYSE: CEIX) closed +7% on Tuesday after reporting strong fourth-quarter results, including a record quarterly profit of $5.39 per share that beat analyst estimates and an 11% year-over-year increase in coal sales volume to 6.2 million tons.
Consol (CEIX) said it expects to increase production ~8% this year, and already has contracts to sell 90% at prices up to 20% higher than what it obtained by 2022.
But the U.S. coal industry’s turnaround may be running out of steam, Bloomberg reports, as falling coal prices and milder-than-expected weather have weakened demand and resulted in rising sales. Bookings.
“We have seen significant volatility in the energy markets, beginning in late 2022 and continuing through early 2023,” Consol Energy (CEIX) chief executive Jimmy Brock said on the company’s post-earnings conference call.
While coal producers have blocked orders, utilities may soon have more fuel than they need and some may seek to renegotiate contracts or postpone deliveries; Consol (CEIX) said that hasn’t happened yet, but B. Riley analyst Lucas Pipes told Bloomberg that he expects requests for deferrals to start soon.
The US Energy Information Administration forecast Tuesday that coal consumption by US utilities will decline 16% in 2023, below last month’s forecast drop of 11 %, and the change is partly related to the mild weather in January.
Consol Energy (CEIX) Q4 Earnings Call Presentation