Arch Resources Inc (ARCH, Financial) released its Q3 2023 earnings report on October 26, 2023. The company reported a net income of $73.7 million, or $3.91 per diluted share, a decrease from the net income of $181.0 million, or $8.68 per diluted share, reported in the same period last year. The company's adjusted EBITDA for the quarter was $126.3 million, down from $223.0 million in Q3 2022. Revenues for the quarter totaled $744.6 million, a decrease from $863.8 million in the prior-year quarter.
Operational Highlights
Despite challenges at the Leer South mine, Arch's core metallurgical segment delivered first-quartile cash costs, a sequential step-up in per-ton realizations, and a quarter-over-quarter increase in per-ton cash margin during the third quarter. The segment generated $86.5 million in discretionary cash flow. The board recently increased the weighting of share repurchases in Arch’s capital allocation formula, highlighting its confidence in the company’s long-term outlook.
Financial Performance
During the quarter, the company deployed $28.2 million to repurchase 215,551 shares at an average price of $130.83 per share. The board declared a total quarterly cash dividend of $21.6 million, or $1.13 per share, equivalent to 25 percent of Arch’s third quarter discretionary cash flow. The company ended the third quarter with indebtedness of $131.2 million and cash, cash equivalents, and short-term investments totaling $213.5 million, resulting in a net cash positive position of $82.3 million.
Looking Ahead
Arch Resources Inc (ARCH, Financial) remains focused on driving incremental productivity and cost improvements, capitalizing on a highly constructive global coking coal market, extending the global reach of its high-quality coking coal products, maintaining and augmenting its strong financial position, and extending its industry-leading sustainability practices.
Explore the complete 8-K earnings release (here) from Arch Resources Inc for further details.
