Century Aluminum’s Q3 Earnings And Revenue Beat Street Projections

Century Aluminum’s Q3 Earnings And Revenue Beat Street Projections

American aluminium smelter Century Aluminum released results for the third quarter yesterday. The firm’s numbers surpassed estimates for both earnings and revenue for the quarter.

Century recorded a net loss of US$20.3 million in the third quarter, a reversal from the second quarter’s net income of US$19.4 million. Adjusted net income for the quarter totaled US$2.3 million, down on the quarter from Q2’s total of US$30.9 million.

Adjusted EBITDA for the just-ended quarter came to US$28.7 million, off by US$25.8 million from the quarter prior. Century says lower alumina costs took its toll on the number, with improved prices for the aluminium precursor at the LME and in certain regions helping to diminish the impact.

Century sold US$481.8 million in product last quarter, up from the second quarter total of US$470.0 million. Primary aluminium shipments last quarter improved over the quarter prior, from 180,220 metric tons in the second quarter to 182,926 metric tons in the third quarter.

Michael A. Bless, President and Chief Executive Officer, said the relatively favorable results in the quarter reflected an improved market that will likely continue into the coming year.

“Industry fundamentals remain attractive. Downstream demand continues to show strong growth and forward indicators suggest this trajectory should continue. Global primary aluminum inventories have decreased as forecasts call for a production deficit of nearly two million metric tons in 2018. U.S. delivery and product premiums remain firm, supported in part by the U.S. administration’s continuing commitment to combat the pervasive practice of state support of this industry around the world. Importantly, we believe we are now seeing the end phase of the difficult conditions that have impacted the alumina sector during 2018; upon resolution of these issues, we see the alumina market as being well supplied and prices returning to historical norms.”

“We’ve made progress on several key strategic initiatives during the last several months,” he continued. “The restart project at Hawesville is on time and budget; we were honored to have Secretary Ross and Governor Bevin join us to celebrate the reopening of the first of the curtailed potlines. We recently signed a two year extension to Mt. Holly’s power contract.”

“With our production back to near capacity and favorable industry conditions, we see 2019 as having the underpinnings for a strong year for the company’s operations and financial performance,” he concluded.