BRISTOL, Tenn., April 3, 2020 /PRNewswire/ -- Contura
Energy, Inc. (NYSE: CTRA), a leading U.S. coal supplier, today
announced temporary operational changes in response to market
conditions, existing coal inventory levels, and recent customer
deferrals due to concern around the global economic impact of the
coronavirus pandemic.
Beginning April 3, 2020, the
majority of Contura operations will be idled for a period of
approximately 30 days, with some sites idling for shorter periods
of time and a few continuing to operate at a near-normal rate of
production. Location-specific schedules are being implemented based
on existing customer agreements, current inventory levels, and
anticipated customer demand. Certain preparation plants, docks, and
loadouts will continue operating to support business needs and
customer shipments.
"As the world attempts to understand and respond to the impacts
of the current pandemic, we are implementing plans that we believe
will help us manage through the challenges of a distressed coal
market and growing coal stockpiles alongside varied customer
responses to the coronavirus," said David
Stetson, chairman and chief executive officer. "In this and
every situation we face, our employees are of utmost concern, and
we are implementing tailored measures across the company to help
reduce the impact and exposure to our workforce wherever possible.
Though most sites will idle for roughly four weeks, we will
continually analyze needs across the organization and demand from
our customer base, and we may extend or shorten these idle periods
based on that analysis. We remain committed to our customers and
expect to continue meeting our sales agreements."
Regardless of production schedule or idle status, all Contura
operations will continue to be monitored and maintained with regard
to safety and environmental compliance.
In connection with these changes and the continued uncertainty
around the impact of the coronavirus, Contura is also withdrawing
its previously announced guidance for 2020. "As with any market
disruption, we are closely monitoring the potential impact of these
events on our workforce, our business, and our financial position,"
said Andy Eidson, chief financial
officer. "We are withdrawing guidance today in tandem with the
announced operational efficiencies and we plan to provide
additional color around our full-year expectations as part of our
first quarter earnings announcement. Our financial approach
continues to focus on cashflow management and protecting the
balance sheet in order to strategically move through this period of
uncertainty and mitigate potential long-term impacts to the
business."
ABOUT CONTURA ENERGY
Contura Energy (NYSE: CTRA) is a Tennessee-based coal supplier with affiliate
mining operations across major coal basins in Pennsylvania, Virginia and West
Virginia. With customers across the globe, high-quality
reserves and significant port capacity, Contura Energy reliably
supplies both metallurgical coal to produce steel and thermal coal
to generate power. For more information, visit
www.conturaenergy.com.
INVESTOR CONTACT
investorrelations@conturaenergy.com
Alex Rotonen, CFA
423.956.6882
MEDIA CONTACT
corporatecommunications@conturaenergy.com
Emily O'Quinn
423.573.0369
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SOURCE Contura Energy, Inc.