Consol Power (NYSE:CEIX) closed +7% on Tuesday after reporting robust This autumn outcomes, together with file $5.39/share quarterly revenue that crushed analyst estimates and an 11% Y/Y enhance in coal gross sales quantity to six.2M tons.

Consol (CEIX) stated it expects to lift manufacturing ~8% this yr, and that it already has contracts to promote 90% of it at costs as a lot as 20% increased than it acquired for 2022.

However the dramatic turnaround of the U.S. coal business could also be working out of steam, Bloomberg reviews, as coal costs are falling and milder than than anticipated climate has weakened demand and resulted in swelling stockpiles.

“We’ve seen important volatility within the power markets, starting in late 2022 and persevering with by means of the beginning of 2023,” Consol Power (CEIX) CEO Jimmy Brock stated on the corporate’s post-earnings convention name.

Whereas coal producers have locked in orders, utilities quickly could also be holding extra gasoline than they want and a few might search to renegotiate contracts or postpone deliveries; Consol (CEIX) stated it has not occurred but, however B. Riley analyst Lucas Pipes advised Bloomberg he expects requests for deferrals will begin quickly.

The U.S. Power Info Administration forecast Tuesday that coal consumption by U.S. utilities will decline 16% in 2023, down from final month’s forecast drop of 11%, with the shift partly associated to gentle January climate.

Consol Power’s (CEIX) This autumn earnings name presentation