Century Aluminum reports turnaround performance in Q2 2017 on higher aluminium prices

<p>Century Aluminum Company reported a net income of $7.1 million for Q2 2017 in comparison to a net loss of $15.1 million for Q1 2017.&nbsp; Results were driven by a $6.1 million unrealized gain relating to LME forward sales.&nbsp; Adjusted net income for Q2 was $0.8 million compared to an adjusted net loss of $5.0 million for Q1 2017. The positive results were a reflection of improved aluminium prices and positive market sentiments in the U.S.&nbsp;</p> <p style="text-align: center;"><img style="vertical-align: middle;" src="http://www.alcircle.com/uploads/images/century4.jpg" alt="News" width="517" height="226" /></p> <p>The adjusted net income was $0.8 million compared to an adjusted net loss of $5.0 million Q1 2017. Century also reported adjusted EBITDA of $34.0 million, up $11.8 million from Q1 2017.&nbsp; The increase was driven by higher aluminium prices, slightly offset by higher alumina prices.</p> <p>Commenting on the results, Michael Bless, President and Chief Executive Officer said,</p> <p>"Profit conversion on higher revenue was strong despite the predicted increase in alumina costs caused by our pricing mechanisms and inventory costing method; alumina unit costs will decrease in the third quarter.&nbsp; In contrast, we are seeing an increase in the prices of other key raw materials, and we expect this trend to continue for some time."</p> <p><a title="Report3" href="http://www.alcircle.com/exclusivereport/?m=exclusivereport" target="_blank"><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/Report1banner.gif" alt="Report3" width="480" height="82" /></a></p> <p>Total sales also increased to $388.8 million compared with $365.8 million in Q1 2017.&nbsp; Shipments of primary aluminium stood at 182,829 tonnes compared with 186,395 tonnes in Q1 2017. The company reported a net cash of $14.4 million in Q2 and a cash position of $130.7 million at quarter end.</p> <p>Bless projects a global supply surplus for the aluminium industry for the rest of the year&nbsp; due to China&rsquo;s random production.&nbsp; Despite the closing announcement, he is concerned about the continuation of heavy aluminium product export by China.</p> <p>"General manufacturing and construction activity remains relatively robust in our markets, as does demand for our products.&nbsp; However, we continue to expect a global supply surplus in primary aluminum for the foreseeable future, produced by China's still surging and heavily subsidized uneconomic production.&nbsp; While recent closure announcements, if implemented, could portend a more economically justified approach, the trade data continue to show record exports of aluminum products from that country,"&nbsp;Bless concluded.&nbsp;</p>