SunCoke Energy Partners 1Q net income rises to $39.8 million

Business Wire

LISLE- SunCoke Energy Partners reported first quarter 2016 net income of $39.8 million, compared to $12.6 million in the same prior year period.

The quarter's results are primarily driven by the benefit of the Convent Marine Terminal acquisition and a gain on the extinguishment of debt we recognized from our de-levering activities.

"Our cokemaking and coal logistics assets posted another strong performance in the first quarter, and continue to perform in line with expectations," said Fritz Henderson, chairman, president and CEO of SunCoke Energy Partners. "As we demonstrated this quarter, we will continue to remain flexible and responsive to the evolving industry landscape while working to optimize asset performance.

"We are also pleased with our continued progress toward strengthening SXCP's balance sheet as we deploy the steady cash flows generated from our take-or-pay contracts toward repurchasing debt, and expect to continue meaningfully de-levering throughout the balance of the year," Henderson added,

Revenues were $194.5 million in first quarter 2016, a decline of $8.8 million from the same prior year period. The decline was primarily due to the pass-through of lower coal costs in our Domestic Coke segment, partially offset by $7.7 million of revenue generated by our Convent Marine Terminal, which was acquired in August 2015.

Operating income decreased $0.5 million while Adjusted EBITDA increased $9.1 million, respectively. First quarter 2016 results were positively impacted by contributions from CMT, which increased Adjusted EBITDA by $13.0 million. This increase was partially offset by lower steam revenue as a result of the reorganization of Haverhill Chemicals LLC, whom we previously supplied steam.

Net income attributable to SXCP was $39.8 million, an increase of $27.2 million from the same prior year period, primarily driven by $20.4 million of gains on extinguishment of debt recognized during the first quarter 2016, as well as the items discussed above.