LISLE, Ill. - SunCoke Energy, Inc. (NYSE: SXC), a company specializing in the production of coke for steel and iron industries, has declared a quarterly cash dividend. The dividend of $0.12 per share on the company’s common stock is slated for payment on December 2, 2024, to shareholders who are on record by the close of business on November 14, 2024.
This announcement comes as a part of the company's regular dividend distribution strategy. SunCoke Energy has a history of providing dividends to its shareholders, and this recent declaration reflects the company's ongoing commitment to share profits with its investors.
SunCoke Energy operates cokemaking facilities in multiple locations, including Illinois, Indiana, Ohio, Virginia, and Brazil. The company is recognized for its heat-recovery cokemaking technology that not only produces high-quality coke but also captures excess heat for steam or electrical power generation. With over six decades of experience in the cokemaking industry, SunCoke Energy has established itself as a supplier for both domestic and international markets.
In addition to its cokemaking operations, SunCoke Energy’s logistics business plays a significant role in providing material handling services. The logistics terminals, which are strategically located to access various ports, have the capacity to mix and transload a substantial volume of materials annually, serving a diverse range of customers from the coke, coal, steel, and power industries.
The information regarding the dividend is based on a press release statement from SunCoke Energy, Inc. Investors and stakeholders in the company can view this as a continuation of the company's practice of sharing profits through dividends. The company’s stock performance and dividend history are often of interest to current and potential investors, and this announcement is an essential piece of information for their investment considerations.
In other recent news, SunCoke Energy reported a strong second quarter performance for 2024, with consolidated adjusted EBITDA reaching $63.5 million. The company's domestic coke plants operated at full capacity, and its logistics terminals handled a significant 6 million tons. In a display of confidence in its core business, SunCoke announced a 20% increase in its quarterly dividend.
SunCoke Energy maintains a gross leverage below 2 times and is on track to hit the upper end of its full-year adjusted EBITDA guidance, which ranges from $240 million to $255 million. The company ended the second quarter with a cash balance of $81.9 million and an untouched credit facility of $350 million.
In recent developments, SunCoke Energy is actively engaged in the Granite City GPI project with U.S. Steel and has secured new business at domestic terminals. However, the company expects a modest decline in logistics handling tons for the second half of the year. Despite this, SunCoke Energy remains committed to safety, executing its operating and capital plan, and expanding its logistics terminals business.
InvestingPro Insights
SunCoke Energy's recent dividend announcement aligns with its strong commitment to shareholder returns, as highlighted by InvestingPro data. The company's dividend yield stands at an attractive 5.57%, reflecting its dedication to rewarding investors. This is further underscored by an impressive 50% dividend growth over the last twelve months, demonstrating SunCoke's ability to increase shareholder value even in challenging market conditions.
InvestingPro Tips reveal that SunCoke "pays a significant dividend to shareholders," which is clearly evident from the recent declaration. Additionally, the tip noting that "liquid assets exceed short-term obligations" suggests a solid financial position, enabling the company to maintain its dividend payments.
The company's valuation metrics also present an interesting picture. With a P/E ratio of 11.64 (adjusted for the last twelve months as of Q2 2024), SunCoke appears to be trading at a reasonable valuation compared to its earnings. This is complemented by an InvestingPro Tip indicating that the "valuation implies a strong free cash flow yield," which could be attractive for value-oriented investors.
It's worth noting that InvestingPro offers 8 additional tips for SunCoke Energy, providing a more comprehensive analysis for investors seeking deeper insights into the company's financial health and market position.
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