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Dec 31, 2023
Albemarle Q4 2023 Earnings Report
Albemarle's Q4 2023 results were impacted by lower lithium market prices and a lower of cost or net realizable value (LCM) pre-tax charge.
Key Takeaways
Albemarle Corporation reported a decrease in net sales for Q4 2023, primarily due to lower lithium market pricing, despite increased volumes in Energy Storage and Ketjen. The company experienced a net loss, driven by lower lithium market prices and a significant LCM charge.
Net sales decreased by 10% to $2.4 billion, influenced by lower lithium market pricing.
Net loss attributable to Albemarle was $617.7 million, a significant decrease from the prior year.
Adjusted EBITDA was $(315) million, impacted by lower lithium market pricing and an LCM charge.
The company announced proactive measures to unlock >$750 million of cash flow.
Albemarle
Albemarle
Albemarle Revenue by Segment
Revenue by Segment
Energy Storage Revenue
CapyFin.comSpecialties Revenue
CapyFin.comKetjen Revenue
CapyFin.com Forward Guidance
Albemarle introduced full-year 2024 outlook considerations, including Energy Storage ranges based on lithium market price scenarios and utilizing an updated adjusted EBITDA definition.
Positive Outlook
- Projected increase in Energy Storage volumes of 10% to 20% in 2024 compared to 2023.
- Assumes flat market pricing flowing through Energy Storage’s current contract book.
- Spodumene pricing averages 10% of the lithium carbonate equivalent (LCE) price.
- Increased volumes driven by expected high refinery utilization for Ketjen.
- Higher pricing driven primarily by Clean Fuel Technology (CFT) products for Ketjen.
Challenges Ahead
- Specialties outlook reflects continued softness in consumer electronics and elastomers.
- Demand visibility is expected to remain low in the first half of 2024 for Specialties.
- Specialties outlook assumes operations continue as normal in the Middle East, with some shipping delays and tighter availability of processing materials.
- Ranges are based on a projected increase in Energy Storage volumes of 10% to 20% in 2024 compared to 2023.
- Scenarios also assume spodumene pricing averages 10% of the lithium carbonate equivalent (LCE) price, while other costs are assumed to be constant.
Revenue & Expenses
Visualization of income flow from segment revenue to net income