Walter Energy, Inc. (NYSE:WLT) Banking On Increased Steel Demand To Cause Higher Met Coal Sales

Denver, CO, 04/07/2014, (Avauncer.com) – Coal producer and exporter, Walter Energy, Inc. (NYSE:WLT) continues to offer a balanced risk-reward compared to other industry players. The company is currently on a drive of expanding its reserves while also focusing on cost cutting measures, aimed at improving the company’s profit margins.

Stringent environmental regulations continue to have a significant effect on the company. Increased competition from Australian and Indonesian coal exporters also continues to hurt the company’s sales prepositions.

Metallurgical Coal Prices Affecting Sales`

Walter Energy, Inc. (NYSE:WLT) continues to improve in the market having registered a lower than expected net loss for the fourth quarter, which was narrower than Zack’s Consensus estimates. Unfavorable results in the quarter were mainly as a result of lower than expected metallurgical coal prices which greatly affected higher coal sales volume.

Walter Energy expects met coal demand for 2014 to be higher as steel production is expected to increase. Steel demand is expected to increase at the back of expected improvements in in automotive, energy and construction sectors. Steel consumption is expected to be high in key coal markets of China India Japan and the Middle East.

Walter Energy Positioned to Meet Coal Demands

The company remains well positioned to meet the growing demand for coal having reported an increase of 28.3% in 2013 to a high of 3.2 million metric tons. Walter Energy, Inc. (NYSE:WLT) is currently focused on its two deep underground mines which continue to command huge coal met reserves.

Walter Disney current liquidity position stands at $260.8 million in cash and $375 million as part of its revolving credit facility. The company continues to implement a cost curtailment which was successful last year resulting in a decrease in Year over Year expenses.

The major point of concern at the moment is the company’s over reliance on Long Term customers. Failure of these customers to renew their contracts may greatly affect the company’s revenue.

Walter Energy, Inc. (NYSE:WLT) shares were up by 0.25% on Friday trading session closing the day at a high of $8.15.

DISCLAIMER: This content is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment. - Contact us at support @ avauncer dot com if you have any questions or comments.