Century Aluminium Company reports second quarter 2023 results

Century Aluminium Company, the owner's primary aluminium capacity in the United States and Iceland, announced its second quarter 2023 results.

The company's net sales for the second quarter ended June 30, 2023, increased by 4 per cent sequentially, primarily due to higher realized aluminium prices.

Century reported net income attributable to Century stockholders of $7.5 million for the second quarter of 2023, a $46.1 million improvement sequentially. Second quarter results were impacted by $8.2 million of net exceptional items, in particular $6.6 million lower of cost or net realizable value adjustment, net of tax, $3.6 million in curtailment costs related to the Hawesville plant, $1.6 million in share-based compensation costs and $0.7 million related to one-time transaction costs associated with the Jamalco acquisition, partially offset by $(4.3) million of unrealized gains on derivative instruments. Thus, Century reported an adjusted net income of $15.5 million for the second quarter of 2023, a $26.8 million improvement sequentially.

Adjusted EBITDA attributable to Century stockholders for the second quarter of 2023 was $29.5 million. This was an improvement of $5.4 million from the prior quarter, primarily driven by lower energy costs, partially offset by an unfavourable sales mix and planned for operational spending to maintain stability.

Century's liquidity position at quarter end was $231.1 million, a decrease of $10.9 million from the prior quarter.

Jesse Gary, the President and Chief Executive Officer, said, “Global conditions remain complex, with rising interest rates slowing Western economies over the first half and impacting our markets.”

“Despite these macro challenges, Century’s continued focus on cost discipline and operational performance put us in a strong position to continue to deliver robust results despite a declining aluminium price.”

“We made good progress over the second quarter towards integrating our new Jamalco operations into the broader Century team,” continued Gary.

“In Iceland, our billet casthouse project remains on schedule to deliver Natur-AlTM green billet products in the first quarter of 2024. Overall, operational performance across Century’s smelters was excellent in the quarter; we will remain focused over the back half of the year on consistent and safe operational execution.”

Third quarter 2023 outlook

The company expects third-quarter adjusted EBITDA to range between $10 to $20 million based on decreased LME prices and VAP sales, partially offset by improved volume and lower raw material prices and operating costs.