Century Aluminium announces robust Q1 2023 results, with net loss improving 75% Q-o-Q

Century Aluminium, a US-based primary aluminium producer with smelters in Kentucky, South Carolina, and Iceland, announced its first quarter 2023 financial and operational results on Monday, May 8, 2023. The company released that its net sales increased by 4.25 per cent quarter-on-quarter from $529.9 million to $552.4 million, in line with the growth in shipments by 11,694 tonnes. According to the data revealed, shipments in Q1 2023 hiked from 169,471 tonnes to 181,165 tonnes, sequentially.

Century reported a net loss of $38.6 million for Q1 2023, improved by $74.9 million from the previous quarter. The company’s finances were affected by $27.3 million of net exceptional items, in particular $47.8 million of unrealized losses on derivative instruments, and $5.4 million in curtailment costs related to the Hawesville plant but partially offset by $25.6 million lower of cost or net realizable value adjustment. Thus, its adjusted net loss was $11.3 million, down by 63.9 per cent from $31.3 million.

Century’s Adjusted EBITDA in Q1 stood at $24.1 million, reflecting a Q-o-Q surge of 94.35 per cent than $12.4 million, primarily driven by lower energy and raw material costs.

Century's liquidity position at quarter end was $241.0 million, a decrease of $4.0 million from the prior quarter.

Century Aluminium’s President and Chief Executive Officer Jesse Gary said, “Market conditions strengthened in the first quarter, driving a significant improvement in our financial results. Meanwhile, further smelter curtailments in Europe and Yunnan, paired with better than expected aluminum demand, resulted in rising LME prices and regional premiums in the U.S. and Europe.   Combined with strong operating performance, these market conditions allowed for good results across our smelters.”

Mr Gary also said, “We are thrilled to be adding Jamalco to our operating portfolio. Century is very familiar with this excellent asset and management team, having long been one of Jamalco’s largest customers. Jamalco’s strategic location in the Atlantic basin is in close proximity to all of Century’s operating locations, providing short and secure supply lines and low logistics costs to each of our smelters.   Regular supply of Jamalco’s high quality alumina to Century’s smelters will allow for improved operating performance and the vertical integration provided by this acquisition should better position Century to provide consistent financial results through industry cycles.”

Century projects second quarter Adjusted EBITDA to further improve to $25-$30 million based on improved power and other input costs.