This includes $1.8 billion of impairments and compares with the $1.27 billion loss with the year earlier.
The company in Australia now faces liquidity problems because it is not able to draw funds from its parent company in the US which has been placed under Chapter 11 bankruptcy protection as it struggles to refinance its loans. Weak market conditions have prevailed since December, the company has warned.
The Australian company is now scrambling for cash and “some interim arrangements have been agreed and other commercial negotiations are ongoing”, it said.
A $US250 million revolving intercompany loan facility, but may not be enough to accommodate all cash outflows, the company warned.
PEABODY Energy’s revenues decreased by $US510.7 million to $1.02 billion during the three months ended March 31, 2016 compared to the prior year, primarily due to lower realized pricing and lower sales volumes driven by demand and production factors.
To mitigate the impact of lower coal pricing, the company has continued to drive operational efficiencies, optimize production across our mining platform and control expenses at all operational and administrative levels of the organization, which has led to decreases in operating costs and expenses of $401.4 million and in selling and administrative expenses of $15.4 million during the March quarter compared to the prior year period.
Also included in operating results for the March quarter are aggregate restructuring charges of $12.1 million, recognized in connection with certain actions initiated to reduce headcount and costs in Peabody’s Midwestern US Mining and Powder River Basin Mining operating segments, which actions are expected to better align its workforce with its near-term market outlook and improve its cost position moving forward.
Overall, Adjusted EBITDA of $30.1 million for the three months ended March 31, 2016 reflected a year-over-year decrease of $135.5 million to $141.3 million.
Net loss attributable to common stockholders improved for the March quarter compared to the same period in the prior year by $11.5 million.
Lower Adjusted EBITDA was partially offset by debt extinguishment expenses in the 2015 three-month period related to the early refinancing of our 7.375% Senior Notes due 2016, lower depreciation, depletion and amortization, and unrealized gains on non-coal trading derivative contracts in the current quarter.
