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Mar 31, 2023
Alcoa Q1 2023 Earnings Report
Alcoa reported sequential improvements in key earnings metrics and maintained a strong cash balance.
Key Takeaways
Alcoa Corporation reported first quarter 2023 results with a revenue of $2.7 billion. The company saw sequential improvements in net loss and adjusted EBITDA. They finished the quarter with a cash balance of $1.1 billion.
Generated revenue of $2.7 billion
Posted sequential improvements in Net loss attributable to Alcoa of $164 million and Adjusted EBITDA excluding special items of $211 million
Finished the first quarter with a cash balance of $1.1 billion
Paid a cash dividend of $0.10 per share of common stock, totaling $18 million
Alcoa
Alcoa
Alcoa Revenue by Segment
Revenue by Segment
Third-party alumina sales Revenue
CapyFin.comThird-party aluminum sales Revenue
CapyFin.com Forward Guidance
The Company expects lower sequential Alumina Segment Adjusted EBITDA of approximately $55 million in the second quarter related to operating the Kwinana and Pinjarra refineries at the lower bauxite grade, which impacts the refineries with higher usages of caustic, energy, and bauxite and results in lower alumina output.
Positive Outlook
- Other expense is expected to be favorable by approximately $30 million sequentially primarily due to the absence of a one-time charge recorded in the first quarter.
- For the second quarter 2023, the Aluminum Segment Adjusted EBITDA is expected to improve by $30 million on favorable raw materials, volume and lower production costs
- Expected improvements in raw materials and energy prices
Challenges Ahead
- The Company expects lower sequential Alumina Segment Adjusted EBITDA of approximately $55 million in the second quarter related to operating the Kwinana and Pinjarra refineries at the lower bauxite grade
- The reduction in grade will extend the ore supply and provide more time to work through the approvals process.
- The Company expects net unfavorable $10 million impacts as seasonal maintenance and costs associated with the Alumar refinery conveyance system recovery are partially offset by improvements in raw materials and energy prices.
- The Company expects 2023 total alumina and aluminum shipments to remain unchanged between 12.7 and 12.9 million metric tons, and between 2.5 and 2.6 million metric tons, respectively.
- In addition, the Company expects $5 million to $10 million in unfavorable impacts associated with the Portland smelter partial curtailment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income