Century Aluminum Company Reports First Quarter 2017 Results

Thursday, Apr 27, 2017

Century Aluminum Company reported a net loss of $15.1 million ($0.17 per share) for the first quarter of 2017.  Results were impacted by a $14.0 million ($0.16 per share) unrealized loss relating to LME forward sales.  This result compares to a net loss of $168.5 million ($1.93 per share) for the fourth quarter of 2016, which included a $152.2 million ($1.75 per share) impairment charge related to Helguvik.

The first quarter of 2017 adjusted net loss was $5.0 million ($0.05 per share) compared to an adjusted net loss of $11.5 million ($0.12 per share) for the fourth quarter of 2016.

For the first quarter of 2017, Century reported adjusted EBITDA of $22.2 million, up $10.3 million from the fourth quarter of 2016.  The increase was primarily attributable to higher aluminum prices, partially offset by higher raw material costs.

Sales for the first quarter of 2017 were $365.8 million compared with $339.8 million for the fourth quarter of 2016.  Shipments of primary aluminum for the first quarter of 2017 were 186,395 tonnes compared with 183,210 tonnes shipped in the fourth quarter of 2016.

Net cash used in operating activities in the first quarter of 2017 was $11.3 million.  We received $13.6 million in proceeds from the sale of our Ravenswood, W.V. facility.  Our cash position at quarter end was $125.9 million and we had $99.5 million of revolver availability.

"All operations are stable and are performing well," commented Michael Bless, President and Chief Executive Officer.  "Conversion costs during the quarter were in line with expectations and remain so.  Alumina pricing has, consistent with our expectations, shown a downward trend.  Financial results should continue to strengthen in this market environment, given that the vast majority of our sales are based upon metal prices one to three months prior to the current month.  Cash flow was impacted by a working capital adjustment related to changes in the commercial terms of a portion of our U.S. sales contracts, but was otherwise strong."

"Industry conditions remain mixed," continued Bless.  "Our markets in the U.S. and Europe continue to be distorted by significant trade flows caused by the illegally subsidized excess capacity and production in China.  This uneconomic capacity must be permanently removed in order to restore fair global trade conditions throughout the value chain in our sector.  We are confident the U.S. and other governments will continue to insist that China take immediate steps to address the unsustainable structure of its aluminum industry.  Demand, on the other hand, remains vibrant in our markets.  Fair trading conditions, coupled with our company’s market position in the U.S. and Europe, should produce an attractive environment for Century’s shareholders.”

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