Century Aluminum Company reported a net loss of $168.5 million for Q4 2016 in comparison to the net loss of $43.1 million in Q4 2015. Results were negatively impacted by a $152.2 million impairment charge related to the Helguvik project in Iceland and $6.9 million charge related to discrete tax items. The fourth quarter adjusted net loss was $11.5 million. The loss was partially offset by a favourable $2.1 million market inventory adjustment.
{alcircleadd}Total sales value dropped from $383.9 million in Q4 2015 to $339.8 million in Q4 2016. The company shipped 183,210 tonnes of primary aluminium for Q4 2016 compared with 211,710 tonnes shipped in Q4 2015. The decrease in sales and shipment volume was primarily due to capacity curtailment that took place in Q4 2015.
Net cash provided by operating activities in the fourth quarter of 2016 was $22.6 million and the cash position at quarter end stood at $132.4 million.
Century reported a net loss of $252.4 million for the full year 2016 compared with a loss of $59.3 million in 2015, driven by charges related to the Helguvik project and the closure of the Ravenswood facility, and tax charges.
Total sales value for the full year 2016 dropped to $1,319.1 million from $1,949.9 million in 2015. The company shipped 733,825 tonnes of primary aluminium in 2016 compared with 921,958 tonnes shipped in 2015. The decrease in sales and shipment volume was primarily due to curtailment actions taken in the second half of 2015 combined with lower aluminium prices.
"All operations performed well during the quarter, with key performance indicators and financial results at expected levels," commented Michael Bless, President and Chief Executive Officer. “The company's financial condition, which remained robust through the significant commodity price weakness of late 2015 into 2016, has only improved," he added.
Bless referred to the case filed by U.S. government at WTO as an important development in the US market.
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"We've seen important developments in our markets over the last several months," continued Bless. "The U.S. government recently filed a WTO complaint accusing China of illegally subsidizing its primary aluminium sector…We are gratified to see that the industry is strongly supportive of this action…The first step in the proceedings will begin with consultations and we are hopeful that by the end of the proceedings China will have addressed its excess capacity problems; we believe such action would inure to the benefit of the industry and society in China as well as to the broader global market. Given aluminium's strong demand profile, a supply environment consistent with global trade laws would, we believe, produce a rational and healthy long-term market for producers and consumers," he said.
“While we await the market rationalization the WTO process is designed to produce, we will continue to invest prudently in modest high return projects not dependent upon the price of the commodity. We continue to believe excellent opportunities exist for Century in our markets in the U.S. and Europe, and we will continue to develop our business in this respect,” he concluded.
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