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Sep 30, 2021
Century Aluminum Q3 2021 Earnings Report
Reported a net loss due to net exceptional items, but adjusted net loss improved sequentially driven by higher prices of primary aluminum and increased regional premiums.
Key Takeaways
Century Aluminum Company reported a net loss of $(52.4) million for Q3 2021, which was negatively impacted by $46.7 million of net exceptional items. However, the adjusted net loss improved sequentially to $(5.7) million, driven by higher aluminum prices and increased regional premiums. Adjusted EBITDA for Q3 2021 was $70.3 million, an increase of $36.4 million from the prior quarter.
Realized LME aluminum price of $2,375/T in third quarter is up $220/T from prior quarter
Realized regional premiums of $670/T and $245/T for U.S. Midwest and EU Duty Paid, respectively, up $180/T and $70/T from prior quarter
Inventories at post financial crisis lows
Announced casthouse expansion project into low-carbon billet production for Grundartangi, Iceland smelter
Revenue by Geographic Location
Forward Guidance
Century expects its expansion projects at Hawesville and Mt. Holly to be substantially complete by year end and expects to continue to deliver strong results in the fourth quarter and beyond, despite inflationary pressure in key raw materials.
Positive Outlook
- Expansion projects at Hawesville and Mt. Holly progressing on schedule
- Expects expansion projects to be substantially complete by year end
- Operations remain well positioned to continue to deliver strong results in the fourth quarter and beyond
- Commencement of construction of a new 150,000 tonne low-carbon billet casthouse at Grundartangi
- New casthouse will enable Grundartangi to cast over 80% of its production as value-added products
Challenges Ahead
- Seeing inflationary pressure in many key raw materials
- Most significant inflationary pressure in energy and alumina
- Net loss of $(52.4) million for the third quarter of 2021
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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