SunCoke Energy (SXC) risk factors, FY2024 10-K

Other

1. 01Our business, operating results, cash flows and financial condition are subject to these risks and uncertainties, any of
2. 02These risk factors represent what we believe to be the known material risk factors with respect to us and our business
3. 03Risks Inherent in Our Business and Industry
4. 04If our assets do not generate the amount of future cash flows that we expect, or we are not able to execute on capital maintenance or procure replacement assets in an economically feasible manner, our future results of operations may be materially and adversely affected
5. 05Substantially all of our sales are made to a limited number of customers. We expect these customers, and/or their respective successors in interest, by operation of merger, or otherwise, to continue to account for a significant portion of our revenues for the foreseeable future
6. 06Impairment in the carrying value of long-lived assets could materially and adversely affect our business, financial condition and results of operations
7. 07We face competition, both in our cokemaking operations and in our logistics business, which has the potential to reduce demand for our products and services, and that could materially and adversely affect our financial condition and results of operations
8. 08We are subject to extensive laws and regulations, which may increase our cost of doing business and have an adverse effect on our cash flows, financial position, or results of operations
9. 09Complying with these and other regulatory requirements, including the terms of our permits, can be costly and time-consuming, and may hinder operations. In addition, these requirements are complex, change frequently and have become more stringent over time
10. 10Our operations may impact the environment or cause exposure to hazardous pollutants, which could result in material liabilities to us
11. 11We may be unable to obtain, maintain or renew permits or leases necessary for our operations, which could materially and adversely affect our production, cash flows or profitability
12. 12Our businesses are subject to inherent risks, some for which we maintain third party insurance and some for which we self-insure. We may incur losses and be subject to liability claims that could materially and adversely affect our financial condition, results of operations or cash flows
13. 13Our operating results have been and may continue to be affected by fluctuations in our costs of production, and, if we cannot pass increases in our costs of production to our customers, our financial condition, results of operations and cash flows may be negatively affected
14. 14We may incur costs and liabilities resulting from claims for damages to property or injury to persons arising from our operations, and such costs and liabilities could have a material and adverse effect on our financial condition or results of operations
15. 15Physical effects attributed to, and various parties’ efforts to respond to climate-related changes, could materially and adversely affect our operations and impose significant costs on our business and our customers and suppliers
16. 16Stakeholder scrutiny of sustainability matters could materially and adversely affect our business and our stock price

Risks Related to Our Cokemaking Business

1. 17Excess capacity in the global steel industry, and/or increased exports of coke from producing countries, may weaken our customers' demand for our coke and could materially and adversely affect our future revenues and profitability
2. 18Failure to maintain effective quality control systems at our cokemaking facilities could have a material adverse effect on our results of operations
3. 19Disruptions to our supply of coal and coal mixing services may reduce the amount of coke we produce and deliver, and if we are not able to cover the shortfall in coal supply or obtain replacement mixing services from other providers, our results of operations and profitability could be adversely affected
4. 20Limitations on the availability and reliability of transportation, and increases in transportation costs, particularly rail systems, could materially and adversely affect our ability to obtain a supply of coal and deliver coke to our customers
5. 21If we are unable to effectively protect our intellectual property, third parties may use our technology, which would impair our ability to compete in our markets
6. 22We are subject to certain political or country risks due to the Vitória, Brazil cokemaking facility that could adversely affect our financial results

Risks Related to Our Logistics Business

1. 23decreased demand for coal, or other bulk commodities, or a decrease in the market price of coal, or other bulk commodities, could have a material adverse effect on the results of operations or financial condition of our logistics business
2. 24The geographic location of CMT could expose us to potential significant liabilities, including operational hazards and unforeseen business interruptions, that could substantially and adversely affect our future financial performance

Risks Related to Indebtedness, Liquidity and Financial Position

1. 25We may need additional capital in the future to meet our financial obligations and to pursue our business objectives. Additional capital may not be available on favorable terms, or at all, which could compromise our ability to meet our financial obligations and grow our business
2. 26We may face material debt maturities which may adversely affect our consolidated financial position
3. 27We may be adversely affected by the effects of inflation
4. 28Our level of indebtedness could adversely affect our financial condition and prevent us from fulfilling our obligations under our credit facilities and other debt documents. Further, our credit facilities contain operating and financial covenants that may restrict our business and financing activities

General Risks

1. 29Sustained uncertainty in financial markets, or unfavorable economic conditions in the industries in which our customers operate, may lead to a reduction in the demand for our products and services, and adversely impact our cash flows, financial position or results of operations
2. 30Sustained volatility and disruption in worldwide capital and credit markets in the U.S. and globally could restrict our ability to access the capital market at a time when we would like, or need, to raise capital for our business including for potential acquisitions, or other growth opportunities
3. 31Labor disputes with the unionized portion of our workforce could affect us adversely. Union represented labor creates an increased risk of work stoppages and higher labor costs
4. 32Our ability to operate our company effectively could be impaired if we fail to attract and retain key personnel
5. 33We currently are, and likely will be, subject to litigation, the disposition of which could have a material adverse effect on our cash flows, financial position or results of operations
6. 34Security breaches and other information systems failures could disrupt our operations, compromise the integrity of our data, expose us to liability, cause increased expenses and cause our reputation to suffer, any or all of which could have a material and adverse effect on our business or financial position
7. 35We are exposed to, and may be adversely affected by, interruptions to our computer and information technology systems and sophisticated cyber-attacks
8. 36We are or may become subject to privacy and data protection laws, rules and directives relating to the processing of personal data in the states and countries where we operate