On February 21, 2024, Century Aluminum Company announced its fourth quarter and full-year results for 2023, revealing net sales of $512.3 million in Q4 2023 and $2,185.4 million in the entire year. Both in Q4 and full-year, Century's net sales experienced a downfall of 6.03 per cent (sequentially) and 21.31 per cent (Y-o-Y), respectively, from $545.2 million and $2,777.3 million.
Net sales in the fourth quarter fell despite a 1 per cent Q-o-Q rise in primary aluminium shipments from 171,995 tonnes to 173,871 tonnes. Shipments in full-year stood at 700,680 tonnes, down by 8.85 per cent from 768,691 tonnes.
Century's fourth quarter results were primarily impacted by $9.2 million of net exceptional items, in particular $7.4 million related to the power equipment failure at Jamalco, $2.9 million of unrealized losses on forward derivative contracts (net of tax), and $1.3 million increase in share-based compensation costs driven by market inputs, partially offset by $3.0 million of lower cost or net realizable value adjustment (net of tax).
The company's adjusted EBITDA attributable to stakeholders was derived at $57.1 million in Q4 compared to $9.3 million in Q3 2023. That displayed an improvement of $47.8 million. In the full-year, the EBITDA stood at $120 million versus $143.8 million in 2022.
Century reported a net loss attributable to stakeholders of $43.1 million for the full year 2023, a $29.0 million decline from the full year 2022, driven primarily by the change in net income (loss) provided by forward and derivative contracts, partially offset by the recognition of the full-year Inflation Reduction Act Advanced Manufacturing credit and the non-recurring of prior year one-time impairment charge.
For the first quarter of 2024, Century Aluminum expects Adjusted EBITDA to range between $5 and $15 million based on improved raw material costs offset by lower value-added product premiums.
Century President and CEO Jesse Gary said: "As we enter 2024, we remain focused first and foremost on the safety of our employees and improving the communities in which we operate," continued Mr. Gary. "We are also very encouraged by the recently announced Inflation Reduction Act Advanced Manufacturing Credits and the opportunities that this program will create for our US operations. We remain focused on executing our long-term capital programs, including completion of our Grundartangi casthouse project, and continue to operate the business in a disciplined manner during this volatile market environment."
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