Peabody Energy has set a 2013 capital expenditure budget of $450 million to $550 million, roughly half that of 2012, and will further defer "early-stage" projects until coal market conditions improve, the St. Louis-based producer said Tuesday.
In addition, the company said it is targeting 2013 sales of 230 million to 250 million st. It sold 248.5 million st last year.
"Global coal markets remained challenged in 2012, with strong increases in seaborne thermal demand but a weak global pricing environment and significant declines in U.S. coal use," Chairman and CEO Gregory Boyce said in a statement.
"Turning to 2013, recent data suggests that China's economic growth is again accelerating, and we have seen some rebound in global coal prices, while European and U.S. economies are likely to remain sluggish. In the U.S. we expect a 40 to 60 million ton increase in coal demand based on natural gas prices that continue to support gas-to-coal switching," he added.
The company reported $1 billion net loss in the fourth-quarter, compared with net income of $222 million a year earlier, largely because of $921 million in asset impairment and mine closure costs.
