SunCoke Energy Inc. (NYSE:SXC) Q2 2017 Earnings Conference Call - Final Transcript

Jul 27, 2017 • 11:00 am ET

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SunCoke Energy Inc. (NYSE:SXC) Q2 2017 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning. My name is Tishan and I will be your conference operator today. At this time, I would like to welcome everyone to the SunCoke Energy SXC Second Quarter 2017 Earnings Conference call. [Operator Instructions]

I would now like to turn the call over to Kyle Bland, Director of Finance and Investor Relations. The floor is yours.

Executive
Kyle Bland

Thanks, Tishan. Good morning and thank you for joining us to discuss SunCoke Energy's Second Quarter 2017 Earnings. With me today are Fritz Henderson, our Chairman, President and Chief Executive Officer; and Fay West, our Senior Vice President and Chief Financial Officer.

Following the remarks made by management, we will open the call for Q&A. This conference call is being webcast live on the Investor Relations section of our website, and a replay will be available there for a few weeks. If we don't get to your questions on the call today, please feel free to reach out to our Investor Relations team.

Before I turn the call over to Fritz, let me remind you that the various remarks we make on today's call regarding future expectations constitute forward-looking statements, and cautionary language regarding forward-looking statements in our SEC filings apply to the remarks we make today. These documents are available on our website, as are reconciliations to any non-GAAP measures discussed on today's call.

With that, I'll turn it over to Fritz.

Executive
Frederick Henderson

Thanks, Kyle, and thank you all for joining the call this morning. Before I hand it over to Fay to review the results in detail, I want to highlight a few things from the second quarter. First, our assets continue to perform in line with expectations. We did so again here in the second quarter despite working through a scheduled major outage at our Granite City plant. And we have also commenced in the quarter our 2017 rebuild campaign in the Indiana Harbor.

On the Indiana Harbor rebuild project, we are off to a good start on the 2017 campaign. We currently have 12 ovens already completed, back in service and another 31 ovens at various stages in the process, but out of service today.

In total -- before I get to that, in parallel we are also commenced in the second quarter, implementing improvements in the 48 2015 rebuild ovens to incorporate lessons learned to date and we expect all of those ovens including the rebuild ovens to be completed by the end of November.

Just to give you a sense of what's happening at the plant and that really commenced in the second quarter, we had intended this year to rebuild 53 ovens. Given the encouraging results we've seen and our ability to execute, we've increased that slightly from 53 to 58 ovens.

With buffer ovens, which we take offline, when we rebuild an oven, we take the adjoining ovens offline in the blocks. That would include when we take our 58 ovens out of service to rebuild to 75 and then we're also repairing 48 additional ovens