Warrior Met Coal Raises 2023 Sales & Production Outlook As Strike Ends

Warrior Met Coal Inc HCC disclosed revised guidance for FY23 to reflect the end of the labor strike and resulting incremental production volume as employees resume work. 

The company recognized incremental production and sales volume of approximately 500,000 short tons, primarily occurring in H2 2023.

On February 16, 2023, the labor union ended the strike that started in April 2021, with around 250 eligible union-represented employees returning to work. 

HCC expects sales volumes to increase by 8%, driving higher profitability and cash flows.

For 2023, the company raised guidance for coal sales of 7.1 - 7.7 million short tons (vs. 6.6 - 7.2 million short tons earlier) and coal production of 6.8 – 7.4 million short tons (vs. 6.3 - 6.9 million short tons earlier). 

HCC continues to expects capital expenditures for existing mines of $95 million - $105 million.

"We are pleased to welcome back the returning employees and look forward to the incremental impact on our sales and production volumes this year. Despite our ability to continue to operate our business successfully during the labor strike, the upside to an increased workforce is material, but we are still short of our historical staffing levels," said Walt Scheller, CEO of Warrior. 

Price Action: HCC shares are trading higher by 1.51% at $35.96 on the last check Tuesday.