Warrior Met Coal, Inc. reported net income of $250.6 million, or $4.79 per diluted share, for the year ended December 31, 2024, compared to $478.6 million, or $9.20 per diluted share, in 2023. This decrease in net income resulted from a 9% decline in total revenues, primarily due to a 14% decrease in the average net selling price per metric ton of steelmaking coal, partially offset by a 6% increase in sales volume. The company's adjusted EBITDA was $447.8 million in 2024, down from $698.9 million in 2023. Sales volumes reached 7.2 million metric tons in 2024, while production totaled 7.5 million metric tons, representing record high annual production for Mine No. 4.
Significant changes compared to the previous fiscal year include a decrease in average net selling price per metric ton of steelmaking coal from $241.64 to $207.32, and an increase in the cash cost of sales per metric ton from $132.60 to $138.10. The increase in cash cost of sales was attributed to higher labor and supply costs, and increased transportation costs due to lock and dam system failures. The company's geographic customer mix shifted from a 48% concentration in Europe in 2023 to a more balanced distribution in 2024, with 42% of sales in Asia, 38% in Europe, and 19% in South America. The company also experienced a decrease in other revenues, primarily due to lower natural gas prices and sales volumes.
Strategic developments during the year included continued progress on the Blue Creek mine development project. The company invested $350.5 million in Blue Creek during 2024, bringing the total project investment to $716.5 million. Production at Blue Creek commenced, yielding 190,000 metric tons. The company also implemented scope changes to the Blue Creek project, shifting from a single-channel coal transportation system to a more flexible model utilizing both rail and barge transportation. These changes are expected to lower operating costs and improve risk management.
Key operational developments included a total reportable incidence rate of 1.53, significantly lower than the national average for underground coal mines. The company also paid $43.8 million in regular and special cash dividends during the year. The company's liquidity remained strong, with total liquidity of $654.7 million at the end of 2024. The company's workforce totaled 1,336 employees as of December 31, 2024.
The company anticipates continued pressure on the pricing environment for steelmaking coal due to weak global steel markets and increased production in India. The company expects to provide further updates on the Blue Creek project's financial and operational performance in the near future. The company also noted that its ability to pay dividends is subject to covenants in its debt agreements.
About WARRIOR MET COAL, INC.
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