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01 MAY 2022 AL CIRCLE

Hazardous waste recycler Befesa delivers strongest quarterly results in its 35-year history

EDITED BY : RUPANKAR MAJUMDER 2MINS READ

As a leading provider of hazardous waste recycling services to the aluminium and steel industries, Luxembourg-based Befesa S.A., recently reported the strongest quarterly results in its 35-year history, with an EBITDA of 61.1 million euros ($64.4 million).

Befesa delivers strongest quarterly results in its 35-year history

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Befesa said, “In addition, it was 25 % greater than the company's Q1 2021 EBITDA of 48.8 million euros, which supports a positive outlook for 2022.”

Based on the company's findings, its year-over-year positive earnings performance this quarter was primarily driven by strong base metal prices and good volume performance. This encompassed the contribution from its Unites States zinc operations and foremost volume from its first facility in China. These costs more than offset energy inflation and higher treatment charges of $230 per tonne for zinc. However, the comprehensive usage of the plant was recorded at pre-pandemic levels of 80% for Aluminium Salt Slags & SPL (spent potliner) and 88% for Steel Dust.

The company anticipates achieving double-digit earnings growth once again in 2022, driven by the execution of its expansion projects and supported by a buoyant business model, diversified global footprint, and effective cash allocation.

“The company expects 2022 EBITDA to range from 220 million euros and 270 million euros, or $232 million to $285 million, for 11% to 37% year-over-year growth. The company says its wide guidance range is driven by market (volume), energy and base metal price volatility”, Befesa added.

Javier Molina, Befesa’s Chief Executive Officer said, “Our customers and our company face a market environment of very high volatility. Befesa, fortunately, entered this challenging year in the best financial and strategic shape. Our key growth initiatives in the U.S. and China are delivering. Our conservative hedging approach and long-term capital structure safeguard the proposed dividends and funding of our growth road map.”

Report on World Recycled Aluminium Market Analysis

The Frankfurt Stock Exchange-listed Befesa SA has facilities in Germany, Spain, Sweden, France, Turkey in Europe and South Korea & China in Asia and the USA. The company manages and recycles over 2 million tonnes of residues annually through its two business units, Aluminium Salt Slags recycling services and Steel Dust.


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EDITED BY : RUPANKAR MAJUMDER 2MINS READ

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