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27 OCTOBER 2017 AL CIRCLE

Century Aluminum reports improved EBITDA and income for Q3 2017

EDITED BY : BEETHIKA BISWAS 2MINS READ

Century Aluminum Company reported net income of $20.8 million for Q3 2017 in comparison to net income of $7.1 million for Q2 2017. Adjusted net income for Q3 2017 was $14.4 million compared to adjusted net income of $0.8 million for Q2 2017. Results were favourably driven by a $5.5 million non-cash gain and gain relating to LME forward sales. 

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Century reported adjusted EBITDA of $47.9 million, up $13.9 million from the second quarter of 2017 primarily attributable to increased volume, favourable sales mix and lower raw material costs. Total sales value stood at $400.6 million compared with $388.8 million for Q2 2017.  Shipments of primary aluminum for the third quarter of 2017 were 184,974 tonnes compared with 182,829 tonnes shipped in the second quarter of 2017.

Operating activities accumulated net cash of $47.4 million in Q3 2017. Century's cash position at quarter end was $174.2 million and revolver availability was $136.6 million.

“We are pleased with the company’s performance during the last several months,” commented Michael Bless, Century’s President and Chief Executive Officer.  “All operations are stable with production metrics and efficiencies demonstrating consistent improvement.  As in past quarters, operating leverage on revenue growth continues to be favorable; the third quarter increase in sequential adjusted EBITDA exceeded the growth in revenue.  Cash flow was far greater than adjusted net income.”

Bless attributed the good results to the favourable market fundamentals supported by good demand trends in our key markets in the U.S. and Europe.

“Commodity prices, including aluminium, alumina, petroleum coke and pitch, took a meaningful leg up beginning in late summer; we will see the impact of each of these prices reflected in our fourth quarter financial results,” he added. 

He considered the regulatory reforms in China as the driving force behind the changing market dynamics. He expects the correlation between the LME price and that of key raw materials to return to historical norms within the near term. He observes that China’s commitment to curtail illegally subsidized alumina and aluminium capacity will determine the direction of the metal price in the mid and long term. He reiterated his stand on ensuring a level playing field for all market participants in the global market.

Century Aluminum Company is a primary aluminium producer with primary smelting capacity in the United States and Iceland.


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EDITED BY : BEETHIKA BISWAS 2MINS READ

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