Suncoke Energy Stock Price, News & Analysis

SunCoke Energy, Inc. (NYSE: SXC) is a manufacturing company that supplies high-quality metallurgical coke and related industrial services to domestic and international customers. Its coke is used in the blast furnace production of steel and in the foundry production of casted iron. According to company disclosures, the majority of its coke sales are under long-term, take-or-pay contracts, and it also exports coke to overseas customers seeking high-quality product for their blast furnaces.

SunCoke’s business is closely tied to the steel value chain. The company describes itself as a supplier of metallurgical coke and logistics services, and notes that its operations draw on more than 60 years of cokemaking experience. SunCoke’s facilities are located in Illinois, Indiana, Ohio, Virginia and Brazil, and it also operates a cokemaking facility in Vitória, Brazil for an affiliate of ArcelorMittal. The company has identified its Domestic Coke operations as consisting of cokemaking facilities and heat recovery operations at its Jewell, Indiana Harbor, Haverhill, Granite City and Middletown plants.

Core operations and segments

Information from company press releases and filings indicates that SunCoke’s activities span several operating areas:

• Cokemaking: Production of metallurgical coke used primarily in blast furnace steelmaking and foundry iron production. The company has highlighted long-term, take-or-pay contracts as a key feature of its coke sales.
• Domestic Coke: A segment that includes the Jewell, Indiana Harbor, Haverhill, Granite City and Middletown plants, which produce coke and utilize heat-recovery technology.
• Brazil Coke: A cokemaking facility in Vitória, Brazil operated for an affiliate of ArcelorMittal.
• Logistics / Industrial Services: Handling and mixing services for coal and other aggregates at logistics terminals, as well as slag and materials handling and processing services for steel and other bulk customers.

The company has reported that its process utilizes a heat-recovery technology that captures excess heat for steam or electrical power generation. This technology is presented as a core element of how SunCoke operates its cokemaking facilities.

Logistics and industrial services

SunCoke’s logistics and industrial services business provides export and domestic material handling services to coke, coal, steel, power and other bulk customers. Company descriptions state that its logistics terminals have the collective capacity to mix and transload more than 40 million tons of material each year and are strategically located to reach Gulf Coast, East Coast, Great Lakes and international ports.

In addition to terminal operations, SunCoke reports that its industrial services offerings include the removal, handling and processing of molten slag at customer sites, as well as preparation and transportation of metal scraps, raw materials and finished products. Following the completion of the acquisition of Phoenix Global, SunCoke has described its Industrial Services segment as including logistics terminals and multiple molten slag removal, handling and processing operating sites in several countries.

Acquisition of Phoenix Global

In company announcements and SEC filings, SunCoke has reported that it entered into and then completed an acquisition of Flame Aggregator, LLC, which operates as Phoenix Global. Phoenix Global is described as a privately held provider of mission-critical mill services to major steel producing companies. SunCoke has stated that the acquisition adds electric arc furnace operations and international markets to its portfolio and diversifies its customer base, including carbon steel and stainless steel mills.

According to SunCoke, Phoenix Global serves steel producers across multiple mill sites and provides services such as removal, handling and processing of molten slag, and preparation and transportation of metal scraps, raw materials and finished products. SunCoke has also indicated that Phoenix’s long-term contracts have attractive fixed revenue components and limited direct exposure to commodity price volatility, and that the acquisition is expected to provide annual synergies within a stated range.

Customer relationships and contracts

SunCoke’s disclosures emphasize long-term contractual relationships with steel producers. The company has reported extensions of cokemaking contracts with U.S. Steel at Granite City and an amended and restated coke supply agreement between its Haverhill Coke Company LLC subsidiary and Cleveland-Cliffs Steel LLC. These agreements relate to the supply of metallurgical coke from SunCoke facilities to blast furnace operations.

In addition, SunCoke has highlighted that its industrial services and logistics businesses provide services to coke, coal, steel, power and other bulk customers, and that it provides what it describes as mission-critical services to leading steel producers globally through slag handling and related mill services.

Geographic footprint

Based on company statements, SunCoke operates cokemaking facilities and related operations in several U.S. states—Illinois, Indiana, Ohio and Virginia—as well as in Brazil. Its logistics terminals are positioned to serve Gulf Coast, East Coast, Great Lakes and international ports, supporting both domestic and export flows of coke, coal and other bulk materials. Through Phoenix Global, SunCoke has indicated that its industrial services footprint extends to multiple steel and stainless steel mill sites in North America, Brazil, Europe and South Africa.

Role in the steel value chain

Across its press releases, SunCoke characterizes itself as a supplier of metallurgical coke and industrial services that are closely integrated with steel production. Its coke supports blast furnace steelmaking and foundry iron production, while its logistics and slag-handling services support the movement and processing of raw materials, byproducts and finished products at steel mills and terminals. The company has also described the acquisition of Phoenix Global as strengthening its role in the steel value chain by expanding its mill services capabilities and customer base.

Stock and regulatory profile

SunCoke Energy, Inc. trades on the New York Stock Exchange under the ticker symbol SXC. The company routinely communicates with investors through press releases, Securities and Exchange Commission filings, public conference calls, webcasts, sustainability reports and information posted in the investors section of its website. Recent SEC filings on Form 8-K have covered quarterly earnings releases, dividend declarations, the completion of the Phoenix Global acquisition, and amendments to coke supply agreements.

FAQs about SunCoke Energy, Inc. (SXC)

• What does SunCoke Energy, Inc. do?
  SunCoke Energy, Inc. supplies high-quality metallurgical coke used in blast furnace steel production and foundry casted iron production. It also provides logistics and industrial services, including material handling at terminals and slag and materials handling at steel mills.
• How does SunCoke generate revenue?
  According to company descriptions, SunCoke generates revenue primarily from the sale of metallurgical coke, much of it under long-term, take-or-pay contracts, and from providing export and domestic material handling and industrial services to coke, coal, steel, power and other bulk customers.
• What are SunCoke’s main business segments?
  Company disclosures describe a Domestic Coke segment, which includes cokemaking facilities at Jewell, Indiana Harbor, Haverhill, Granite City and Middletown; a Brazil Coke business operating a facility in Vitória, Brazil for an affiliate of ArcelorMittal; and logistics and industrial services operations that handle coal and other aggregates and provide slag and materials handling services.
• Where does SunCoke operate?
  SunCoke reports operating cokemaking facilities and related operations in Illinois, Indiana, Ohio and Virginia in the United States, and in Vitória, Brazil. Its logistics terminals are positioned to serve Gulf Coast, East Coast, Great Lakes and international ports, and through Phoenix Global it provides mill services at sites in North America, Brazil, Europe and South Africa.
• What is the role of Phoenix Global within SunCoke?
  SunCoke has completed the acquisition of Flame Aggregator, LLC, which operates as Phoenix Global. Phoenix Global is described as a provider of mission-critical mill services to major steel producing companies, and its addition brings electric arc furnace operations, international markets and additional slag and materials handling services into SunCoke’s portfolio.
• How does SunCoke’s heat-recovery technology work in its business model?
  The company states that its cokemaking process uses heat-recovery technology that captures excess heat from coke production for steam or electrical power generation. This technology is integrated into its facilities and is part of how it operates its Domestic Coke plants.
• Who are SunCoke’s typical customers?
  Based on company descriptions, SunCoke’s customers include domestic and international steel producers that use metallurgical coke in blast furnaces, foundries producing casted iron, and coke, coal, steel, power and other bulk customers that use its logistics and industrial services. Phoenix Global serves major steel producing companies through mill services contracts.
• What types of contracts does SunCoke use for coke sales?
  SunCoke reports that the majority of its coke sales are under long-term, take-or-pay contracts. It has also disclosed specific long-term supply and contract extensions with steel producers such as U.S. Steel and Cleveland-Cliffs Steel LLC.
• How is SunCoke’s stock identified and where is it listed?
  SunCoke Energy, Inc. is listed on the New York Stock Exchange under the ticker symbol SXC. The company provides financial and operational updates through SEC filings and investor communications.
• What is SunCoke’s connection to Brazil?
  SunCoke operates a Brazil Coke business that consists of a cokemaking facility in Vitória, Brazil, which it operates for an affiliate of ArcelorMittal. In addition, Phoenix Global serves steel mills in Brazil as part of its international mill services footprint.