Weak 2014 numbers worsen an already bad outlook for coal companies – Mining.com

February 2, 2015

The dim outlook for U.S. coal producers has gotten even dimmer.

With the release of its 2014 numbers, Peabody Energy—confirmed what we’ve been saying for some time: the U.S. coal industry has decoupled from the broader, gradually recovering economy and its spiral has deepened. We expect similarly poor performance from Alpha Natural Resources, Arch Coal and other coal producers.

Peabody, the No. 1 producer, reported net losses of $787 million, adding to the $523 million in net losses it recorded 2013. Company executives themselves see no recovery on the horizon, forecasting further losses this year. Alpha and Arch are in similar straits.

The stock prices of these companies places the truth in stark terms. Peabody shares have fallen 64 percent in just the past year, and—like Alpha and Arch—hit fresh lows last week. Peabody Energy lost 15 percent of its market-cap value last week and its stock price is down 91 percent from its five-year peak, in April 2011, of $72.71.