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Dec 31, 2022
Alcoa Q4 2022 Earnings Report
Alcoa reported fourth quarter results, which included a net loss and revenue decrease due to lower prices for alumina and aluminum.
Key Takeaways
Alcoa Corporation reported a net loss of $374 million, or $2.12 per share, on revenue of $2.7 billion for the fourth quarter of 2022. The results were influenced by lower aluminum and alumina prices and higher costs for raw materials and energy.
Generated revenue of $2.7 billion.
Recorded net loss of $374 million, or $2.12 per share; adjusted net loss of $123 million, or $0.70 per share.
Generated $118 million in cash from operations.
Finished the fourth quarter with a cash balance of $1.4 billion.
Alcoa
Alcoa
Alcoa Revenue by Segment
Revenue by Segment
Third-party bauxite sales Revenue
CapyFin.comThird-party alumina sales Revenue
CapyFin.comThird-party aluminum sales Revenue
CapyFin.com Forward Guidance
In 2023, Alcoa projects lower alumina shipments and expects approximately $25 million higher costs from a Western Australia gas supply disruption to be offset by the non-recurrence of the Alumar refinery ARO adjustment.
Positive Outlook
- Non-recurrence of the Alumar refinery ARO adjustment.
- Lower energy costs for Aluminum Segment Adjusted EBITDA.
- $15 million lower raw material costs for Aluminum Segment Adjusted EBITDA.
- $15 million lower production costs for Aluminum Segment Adjusted EBITDA.
- Improved gas supply in Western Australia.
Challenges Ahead
- Total alumina shipments are projected to decrease.
- Western Australia gas supply disruption.
- Lower bauxite quality at the Australian refineries.
- Unfavorable other expense by approximately $45 million sequentially on lower equity income results for Aluminum Segment Adjusted EBITDA.
- Annual mine plan approvals process in Western Australia is currently taking longer than it has traditionally.
Revenue & Expenses
Visualization of income flow from segment revenue to net income