Century Aluminum Company (CENX) Q2 2024 earnings summary

Executive summary

• Net sales reached $561 million in Q2 2024, up sequentially, driven by higher LME aluminum prices and product premiums, while global shipments were about 168,000 tonnes, slightly down from Q1.

• Adjusted EBITDA rose to $34.2 million, reflecting strong operational performance and higher aluminum prices; adjusted net income was $1 million or $0.01 per share.

• Liquidity improved to $343 million, including $41 million in cash and $302 million available on credit facilities, the highest in nearly a decade.

• Jamalco acquisition stabilized costs amid tight alumina supply, with operations quickly restored after Hurricane Beryl and alternative port arrangements in place.

• U.S. and Iceland smelters operated at or near full capacity, with Grundartangi returning to full production after energy curtailment and new green billet trials ongoing.

Financial highlights

• Q2 net sales were $561 million, a 15% sequential increase from Q1, with aluminum shipments at 167,908 tonnes, down from 174,627 tonnes in Q1.

• Adjusted EBITDA increased by $9.2 million sequentially, mainly from higher price premiums.

• Net loss attributable to stockholders was $2.5 million, compared to net income of $7.5 million in Q2 2023; adjusted net income was $1 million.

• Realized LME price was $2,288/ton, US Midwest premium $416/ton, and European premium $284/ton.

• Liquidity at quarter-end was $343 million, including $41 million in cash and $302 million available on the credit facility.

Outlook and guidance

• Q3 2024 Adjusted EBITDA is projected between $65 million and $75 million, supported by higher LME and regional premiums but offset by increased power and seasonal/admin costs.

• Q3 lagged LME expected at $2,440/ton, US Midwest premium at $425/ton, and European premium at $320/ton.

• Management expects cash and available credit to be sufficient for operations over the next twelve months.

• No material financial impact expected from Hurricane Beryl; any impact will be adjusted in Q3 results.

• Capital spending for 2024, excluding Grundartangi casthouse, is estimated at $20–$30 million.