Ramaco swings to Q4'20 net loss YOY on lower coal prices

Coal producer Ramaco Resources Inc. booked a net loss of $4.7 million, or 11 cents per share, in the fourth quarter of 2020, swinging from a prior-year net income of $1.9 million, or 5 cents per share.

The company said Feb. 18 that while sales volumes from own coal production increased 23% year over year to a record 515,000 tons, cash margins plunged 87% to $4 per ton due to lower realized pricing linked to larger declines on the various metallurgical coal indexes.

Revenue increased 12% to $51.1 million and adjusted EBITDA sank to a loss of $1.4 million from an adjusted EBITDA of $9.0 million. Capital expenditure fell 64% to $4.2 million.

In full year 2020, Ramaco swung to a net loss of $4.9 million, or a loss of 12 cents per share, from a 2019 net income of $24.9 million, or 61 cents per share.

Revenue was down 27% to $168.9 million as sales volumes from own coal production fell 8% to 1.7 million tons. Adjusted EBITDA plummeted 67% to $18.5 million and capex sank 46% to $24.8 million.

In 2021, Ramaco expects its own coal production in the range of 1.9 million tons to 2.4 Mt, rising from its 2020 coal output of 1.7 Mt.

Meanwhile, Ramaco appointed Jennifer Gray to its board of directors following the resignation of Tyler Reeder, effective Feb. 16. Reeder's resignation was not due to any disagreement with the company.

Gray is chief compliance officer, deputy general counsel and managing director of Energy Capital Partners LLC.