Century reports loss in Q3 2019; shipments drop on lower production at Hawesville smelter

Century Aluminum, a leading primary aluminium producer with facilities in the United States and Iceland has reported results for Third Quarter 2019 Financial Results.  The company reported aluminium shipments of 198,543 tonnes, a 2% drop quarter-on-quarter due to lower than expected production at Hawesville. Net sales stood at US$438.0 million, a 7% drop QoQ primarily due to lower LME prices. Net loss stood at US$20.7 million and adjusted net loss stood at US$37.4 million. The company reported Adjusted EBITDA of US$(12.2) million primarily due to low LME prices and lagged high alumina prices.

Third quarter results were positively impacted by $16.7 million of exceptional items driven by lower cost and other adjustments. Century's cash position at quarter end was $22.5 million.

“We have seen slowing growth in many of our customers’ markets, and this condition is manifested in declining product premiums,” commented Michael Bless, President and Chief Executive Officer.  

“However, inventory levels remain relatively low and the global balance of supply and demand is, at this time, consistent with a healthy market.”

Mr. Bless continued, “The company’s operations remain largely on track.  At Hawesville, we are on pace to return the plant to full production in 2020.  As previously reported, the three newly rebuilt potlines are fully operational.  Earlier this year, we disconnected one of the two lines which have been continuously operating; its rebuild is on schedule and we expect to begin restarting cells in January and to have the line at full production by the end of the first quarter.”

He also added that all other operations in the company are performing well and conversion costs are under control. The company also had excellent safety performance.