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Sep 30, 2020
Century Aluminum Q3 2020 Earnings Report
Announced third quarter 2020 results, impacted by lower LME prices and regional premiums, as well as higher seasonal power costs.
Key Takeaways
Century Aluminum reported a net loss of $(58.2) million for the third quarter of 2020, with adjusted EBITDA of $(31.4) million. The results were impacted by lower LME prices and regional premiums, as well as higher seasonal power costs.
Shipments of 203,022 tonnes, a 3% decrease over prior quarter
Net sales of $392.9 million
Net loss of $(58.2) million, or $(0.65) per share
Adjusted EBITDA of $(31.4) million due to lower LME prices and regional premiums, as well as higher seasonal power costs
Revenue by Geographic Location
Forward Guidance
Financial performance for the quarter was consistent with the estimates we provided several months ago; of course, these results manifest the very low aluminum price levels which persisted from April through June. At current commodity prices, consolidated earnings and cash flow would be robust.
Positive Outlook
- Order rates are improving.
- Customers are showing increasing confidence regarding the balance of this year as well as 2021.
- Product premiums have generally returned to the levels of early 2020.
- The metal price has strengthened.
- Operations have remained resilient.
Challenges Ahead
- Commodity prices are buffeted by the volatility impacting all risk assets.
- Was surprised and disappointed to read the decision of the state court in South Carolina regarding Mt. Holly's right to receive electric power service.
- This development puts the plant at genuine risk of full curtailment by the end of the year.
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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