On August 8, 2024, Century Aluminum Co (CENX, Financial) released its 8-K filing reporting its second quarter 2024 financial results. Century Aluminum Co produces primary aluminum standard grade and value-added products, operating smelter facilities in the United States and Iceland. The majority of its revenue is generated from Glencore, which purchases nearly all of Century Aluminum's North American production.
Performance Overview
Century Aluminum Co (CENX, Financial) reported net sales of $560.8 million for Q2 2024, surpassing the analyst estimate of $495.97 million. However, the company posted a net loss attributable to Century stockholders of $2.5 million, translating to a diluted loss per share of $0.03, missing the estimated earnings per share of $0.02. The adjusted net income attributable to Century stockholders was $0.7 million, or $0.01 per share.
Key Financial Achievements
The company realized an LME aluminum price of $2,288/MT in the second quarter, up $98/MT from the prior quarter. Adjusted EBITDA attributable to Century stockholders was $34.2 million, an increase of $9.2 million from the previous quarter. This improvement was primarily driven by favorable realized LME and regional price premiums of $21.8 million, partially offset by lower volume and additional operating expenses.
Income Statement Highlights
| Metric | Q2 2024 | Q1 2024 |
|---|---|---|
| Net Sales | $560.8 million | $489.5 million |
| Net (Loss) Income Attributable to Century Stockholders | $(2.5) million | $246.8 million |
| Diluted (Loss) Earnings Per Share | $(0.03) | $2.26 |
| Adjusted Net Income (Loss) Attributable to Century Stockholders | $0.7 million | $(3.0) million |
| Adjusted Earnings (Loss) Per Share | $0.01 | $(0.03) |
| Adjusted EBITDA Attributable to Century Stockholders | $34.2 million | $25.0 million |
Balance Sheet and Cash Flow
As of June 30, 2024, Century Aluminum Co (CENX, Financial) reported cash and cash equivalents of $41.3 million and a strong liquidity position of $342.6 million, an increase of $40.6 million from the prior quarter. The company's total assets stood at $1,805.2 million, with total liabilities of $1,222.3 million.
Challenges and Outlook
The decrease in net earnings during the second quarter was primarily driven by the recognition of the bargain purchase gain from the Jamalco acquisition of $245.9 million in the first quarter of 2024. Additionally, the second quarter results were impacted by $3.2 million of net exceptional items, including $3.5 million of stock-based compensation costs.
Strong operating performance drove improved financial results in the second quarter and leave us well-positioned to benefit from higher aluminum prices in the third quarter and beyond," said Century President and CEO Jesse Gary.
Looking ahead, Century Aluminum Co (CENX, Financial) expects third quarter Adjusted EBITDA to range between $65 to $75 million based on higher LME and regional premium prices and timing of shipments, partially offset by increased power costs.
For more detailed insights and analysis, visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from Century Aluminum Co for further details.
