Q2 2024 GrafTech International Ltd Earnings Call Transcript
Key Points
- GrafTech International Ltd (EAF) has implemented aggressive cost-cutting measures, achieving an 18% reduction in cash costs per metric ton in the first half of 2024 compared to the same period in 2023.
- The company is investing in technical capabilities and expanding its product offerings, including the introduction of an 800 millimeter supersize electrode.
- GrafTech has successfully resolved a long-standing LTA arbitration, removing a substantial risk to its financial position.
- The company is making progress in the EV space, receiving regulatory approval for potential expansion of Seadrift production capacity and investing in R&D for anode materials.
- GrafTech continues to focus on sustainability, publishing its latest sustainability report and making positive impacts through community engagement efforts.
- GrafTech International Ltd (EAF) is operating in a challenging part of the cycle with weak graphite electrode demand and low industry-wide capacity utilization rates.
- The company reported a net loss of $15 million for the second quarter of 2024, with adjusted EBITDA declining to $14 million from $26 million in the same quarter of 2023.
- Pricing pressures persist in most regions, with a 23% year-over-year decline in the weighted average price for non-LTA sales.
- The company expects continued weak demand and pricing pressures for graphite electrodes in the near term.
- Seasonally higher energy costs and planned production declines are expected to increase cash costs per metric ton in the second half of 2024.
Good morning, ladies and gentlemen, and welcome to the GrafTech second quarter 2024 earnings conference call and webcast. (Operator Instructions) This call is being recorded on Friday, July 26, 2024.
And I would like now to turn the conference over to Mike Dillon. Please go ahead.
Thank you, Ace. Good morning and welcome to GrafTech International's second quarter 2024 earnings call. And with me today are Tim Flanagan, Chief Executive Officer; Jeremy Halford, Chief Operating Officer; and Catherine Delgado, Interim Chief Financial Officer.
Tim will begin with opening comments. Jeremy will then discuss safety, the commercial environment, sales and operational matters. Catherine will review our quarterly results and other financial details, and Tim will close with comments on our outlook. We will then open the call to questions.
Turning to our next slide. As a reminder, some of the matters discussed in this call may include forward-looking statements regarding, among other
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