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Sep 30, 2023
Albemarle Q3 2023 Earnings Report
Albemarle's net sales increased by 10%, driven by higher volumes in the Energy Storage business, strategic partnerships were formed, and the MARBL joint venture was streamlined.
Key Takeaways
Albemarle Corporation reported a 10% increase in net sales for the third quarter of 2023, reaching $2.3 billion. This growth was primarily driven by higher volumes in the Energy Storage business. The company's net income was $302.5 million, or $2.57 per diluted share, and adjusted diluted EPS was $2.74. Albemarle is on track to achieve more than $170 million in productivity benefits in 2023.
Net sales increased by 10% to $2.3 billion.
Net income was $302.5 million, or $2.57 per diluted share.
Adjusted diluted EPS was $2.74.
Adjusted EBITDA was $453.3 million.
Albemarle
Albemarle
Albemarle Revenue by Segment
Revenue by Segment
Energy Storage Revenue
CapyFin.comSpecialties Revenue
CapyFin.comKetjen Revenue
CapyFin.com Forward Guidance
Net sales are expected to increase 30% to 35% over the prior year, primarily driven by new mining and conversion capacity delivering 30% to 35% volumetric growth in Energy Storage. Adjusted EBITDA is expected to be flat to down 5% year over year, primarily due to lower Energy Storage pricing as well as the realization of higher spodumene pricing in costs of goods sold from our JV-owned mines.
Positive Outlook
- Net sales are expected to increase 30% to 35% year-over-year.
- Energy Storage volumes are projected to increase 30% to 35% in 2023 compared to 2022.
- Full year realized pricing increases are expected to range from 15% to 20% compared to the prior year, assuming recent lithium market prices continue through the remainder of 2023.
- Construction of Meishan is progressing on-budget and ahead of schedule with mechanical completion expected in early 2024.
- Cash from operations of $1.4 billion for the nine-months ended September 30, 2023 increased $467.9 million versus the prior year period.
Challenges Ahead
- Adjusted EBITDA is expected to be flat to down 5% year over year.
- Energy Storage net sales for the full year are estimated to range between $7.0 billion and $7.2 billion, below our previous outlook primarily due to lower lithium market index pricing.
- Adjusted EBITDA is anticipated to be between $2.9 billion and $3.0 billion, below our previous outlook due to lower expected pricing and lower sales volumes at our Talison joint venture.
- Specialties operations continue as usual without supply chain disruption. We continue to monitor the impact of the ongoing situation in the Middle East on our operations.
- The reduced adjusted EBITDA outlook primarily reflects impacts from timing of shipments and customer mix for Ketjen.
Revenue & Expenses
Visualization of income flow from segment revenue to net income