Century Aluminum Company announced its third quarter 2020 results. Shipments of primary aluminium were 203,022 tonnes in Q3, down 3% from 210,309 tonnes Q2 2020.
Net sales stood at $392.9 million compared with $401.9 million for the second quarter of 2020, down 2% on lower LME prices and regional premiums. Adjusted EBITDA came in at $(31.4) million in Q3, a decrease of $36.0 million primarily driven by unfavourable LME and regional premium price realizations, and higher seasonal power costs.
The company posted a net loss of $(58.2) million and a $(64.4) million net loss on an adjusted basis in Q3. The results were impacted by $6.2 million of exceptional items, including a $15.4 million lower of cost or net realizable value inventory adjustment (net of tax), offset by $8.0 million of unrealized losses on forward derivative contracts (net of tax) and $1.2 million loss on early extinguishment of debt.
Michael Bless, President and Chief Executive Officer said, “Our operations have remained resilient in the face of the continuing challenging environment. Safety performance has been good during the last several months; such a result is only achieved, especially during demanding times, through mutual commitment and vigilance. Given our success operating the plants sustainably through the health crisis, we have taken steps to return to a more typical operating profile. For example, we are now relining cells when required at all plants except Mt. Holly and have begun to implement projects with a longer-term view.”
“The industry, in the U.S. and Europe, has continued to recover. Order rates are improving, and our customers are showing increasing confidence regarding the balance of this year as well as 2021. Product premiums have generally returned to the levels of early 2020. The metal price has strengthened, though it has continued to be buffeted by the volatility impacting all risk assets.”
Mr. Bless concluded, “Financial performance for the quarter was consistent with the estimates we provided several months ago; of course, these results manifest the very low aluminum price levels which persisted from April through June. At current commodity prices, consolidated earnings and cash flow would be robust. We were surprised and disappointed to read the decision of the state court in South Carolina regarding Mt. Holly's right to receive electric power service from the newly formed Goose Creek municipal utility. This development puts the plant at genuine risk of full curtailment by the end of the year. We are in discussions with all relevant constituencies with the singular aim of preserving this excellent business, and most importantly the jobs and economic activity it supports."
source https://www.alcircle.com/news/century-aluminums-net-sales-dropped-in-q3-on-lower-lme-prices-primary-aluminium-shipments-down-3-59511
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