Century reports Q1 2017 results; net loss reduces dramatically QoQ

Century Aluminum Company has announced its first quarter 2017 results. The company reported a net loss of $15.1 million for Q4 2016 in comparison to the net loss of $168.5 million in Q4 2016. Adjusted net loss amounted to $5.0 million compared to an adjusted net loss of $11.5 million for Q4 2016.  Results were impacted by a $14.0 million unrealized loss relating to LME forward sales. Sequentially, the results record substantial improvement, though the company continues making losses.

The reported adjusted EBITDAof $22.2 million was up $10.3 million sequentially on higher LME prices, partially offset by higher raw material costs. The company also reports total revenue of $365.8 million, an 8% increase over prior quarter. Century reports a cash position at quarter end of $125.9 million and revolver availability of $99.5 million. The company received $13.6 million in proceeds from the sale of Ravenswood, W.V. facility.

Sales for Q1 2017 were $365.8 million compared with $339.8 million for Q4 2016.  Shipments of primary aluminium for Q1 2017 were 186,395 tonnes compared with 183,210 tonnes shipped in Q4 2016. 

Business Developments

     • Brought WTO trade case against China for providing unfair subsidies to its aluminum producers

     • Filed antitrust lawsuit against utility serving Mt. Holly smelter

     • Ravenswood facility sale finalized, resulting in proceeds of $14 million

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"All operations are stable and are performing well," commented Michael Bless, President and Chief Executive Officer.  "Conversion costs during the quarter were in line with expectations and remain so.  Alumina pricing has, consistent with our expectations, shown a downward trend.  Financial results should continue to strengthen in this market environment, given that the vast majority of our sales are based upon metal prices one to three months prior to the current month."

"Industry conditions remain mixed," added Bless.  "Our markets in the U.S. and Europe continue to be distorted by significant trade flows caused by the illegally subsidized excess capacity and production in China…Fair trading conditions, coupled with our company’s market position in the U.S. and Europe, should produce an attractive environment for Century’s shareholders,” he concluded. 

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