Century Aluminium’s net sales dropped 3% over the quarter in Q2 2019; Adjusted EBITDA declined by over 70%

The US-based global aluminium producer Century Aluminium, on August 1, announced that its net sales for the second quarter of 2019 declined 3 per cent over the quarter to come in at $473.1 million. In Q1 2019, the company’s net sales were at $490 million. It reported a net income loss of $20.7 million or $0.23 per share, compared to a net loss of $34.6 million or $0.39 per share for the first quarter of 2019. The adjusted net loss in Q2 valued at $16.2 million or $0.17 per share, while that in Q1 was at $66.6 million or $.070 per share.

According to the firm, its second quarter results had been negatively impacted by $4.5 million of exceptional items, driven by a $9.0 million lower of cost or net realizable value inventory adjustment and a $4.3 million loss on the sale of its BHH investment, partially offset by $2.8 million of insurance proceeds related to the Sebree equipment failure and a $6.2 million unrealized gain on derivative instruments.

The financial report showed a drop in the adjusted EBITDA as well for the second quarter from $44.1 in Q1 to $11.7 million, driven by lower alumina and power prices partially offset by lower LME prices.

The total primary aluminium shipments of Century Aluminium in Q2 2019 remained lower by 1.48 per cent. From 206,451 tonnes in Q1 2019, they dropped to 203,380 tonnes in Q2, primarily due to the timing of deliveries.  Century's cash position at the quarter end was at $25.7 million.

Michael Bless, President and Chief Executive Officer of Century Aluminium, shared its forecast saying that market conditions in the US remain dynamic, as demand for aluminium products is estimated to be robust.

He also said the company’s operations are stable and new initiatives are on track. The rebuild program at Hawesville remains on schedule and budget and is expected to return the plant to its full production capacity in 2020.

He further added, “Sebree continues to execute well on its casthouse expansion program.  We signed an agreement to sell our interest in the anode plant in China and received the first half of the cash purchase price.  With the completion of the second baking furnace at our anode plant in the Netherlands, we now have an essentially new carbon plant, with best-in-class efficiencies and environmental systems, in a strategically valuable location that supplies substantially all of our requirements at Grundartangi."