Alcoa’s Q1 2024 revenue stands at par to the earlier quarter, supported by alumina division

On April 17, Alcoa Corporation announced its operational and financial results for the first quarter of 2024 ended March 31, whereby it noted the revenue of $2.6 billion, down by 3.7 per cent from $2.7 billion a year ago but remained at par to the previous quarter.

From the alumina business, Alcoa’s revenue rose 6 per cent due to higher average price and increased shipment but revenue from aluminium division dropped by 3 per cent due to lower average price.

Net loss attributable to Alcoa Corporation was $252 million or $1.41 per share, higher than $150 million or $0.84 per share in Q4 2023, owing to average third-party prices of aluminium and higher production costs, partially offset by lower energy and input costs. The net loss in Q1 2024 also included a charge of $197 million related to the curtailment of the Kwinana refinery.

Alcoa’s Adjusted EBITDA excluding special items was $132 million, reflecting a sequential increase of $43 million due to lower energy and raw material costs. The company entered the quarter with a cash balance of $1.4 billion, of which it used $223 million for operation.

Operational performance

Alcoa’s aluminium production in Q1 2024 was 542,000 tonnes compared to 541,000 tonnes in Q4 2023. Alumina production was 2.67 million tonnes, down by 4 per cent from 2.79 million tonnes. It is to be noted here that Alcoa’s revenue from alumina business increased in Q1 2024 despite the drop in output, supported by higher shipments which increased by 6 per cent due to increased trading.

In aluminium, total shipments decreased by 1 per cent sequentially.

 In March 2024, Alcoa entered into a binding Scheme Implementation Deed with Alumina Limited (ASX: AWC), under which Alcoa will acquire Alumina Limited. The acquisition of Alumina Limited will enhance Alcoa’s position as a leading, upstream aluminium company globally, while simplifying the Company’s corporate structure and governance.

At Warrick smelter, Alcoa completed the restart of one potline, with a capacity of 54,000 tpa, that was curtailed in July 2022.

In January 2024, Alcoa announced the decision to curtail the Kwinana refinery in Australia to be completed in Q2 2024.

Forecast for 2024

Alcoa expects aluminium production in 2024 to total 2.2-2.3 million tonnes and shipments to range between 2.5 and 2.6 million tonnes. For alumina, the company anticipates a production of 9.8-10 million tonnes and shipment of 12.7-12.9 million tonnes.