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Jun 30, 2020
Century Aluminum Q2 2020 Earnings Report
Announced second quarter 2020 results, impacted by exceptional items and unfavorable price realizations, but maintained strong cash flow and liquidity.
Key Takeaways
Century Aluminum Company reported a net loss of $(26.9) million for the second quarter of 2020, with adjusted EBITDA of $4.7 million. The results were negatively impacted by exceptional items including a lower of cost or net realizable value inventory adjustment. However, the company maintained a strong cash flow and liquidity position, ending the quarter with $174.1 million in cash.
Shipments increased by 4% over the prior quarter, reaching 210,309 tonnes.
Net sales decreased by 5% over the prior quarter to $401.9 million, primarily due to lower LME prices and regional premiums.
Net loss was $(26.9) million, or $(0.30) per share.
Adjusted EBITDA was $4.7 million, a decrease from the prior quarter.
Revenue by Geographic Location
Forward Guidance
Third quarter financial performance will reflect the depressed commodity price environment that persisted throughout April and May. The metal price has since then improved meaningfully, consistent with the progress in a broad spectrum of manufacturing sectors and in the economy more generally.
Positive Outlook
- Metal price has improved meaningfully.
- Seeing evidence of these trends in regional and product premiums.
- Century remains in excellent shape to address any number of scenarios.
- Prepared to operate in the present manner for a protracted period, until the public health and economic outlooks become clearer.
- Remain focused on the strategic initiatives that will drive long-term value
Challenges Ahead
- Third quarter reported financial performance will reflect the depressed commodity price environment.
- U.S. delivered price remains depressed as the direct result of the surge of primary aluminum imports from Canada
- Re-imposition of the tariff remains the only method of regaining the effectiveness of the program.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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