CENTURY ALUMINUM Reports FY2022 Q4 Earnings with 287.9% Decrease in Revenue
March 19, 2023
Earnings Overview
On February 23 2023, CENTURY ALUMINUM ($NASDAQ:CENX) announced their FY2022 Q4 earnings results, which showed that total revenue fell 287.9% year over year to USD -113.5 million. Net income declined 19.6% from the same period in the prior year, amounting to USD 529.9 million.
Transcripts Simplified
Century Aluminum reported consolidated global shipments for Q4 being down 2% quarter-over-quarter due to the Hawesville curtailment and partially offset by the completed Mt. Holly restart project. Q4 adjusted EBITDA was a loss of $12 million, an improvement of $24 million compared to the previous quarter, driven by better-than-expected realized lagged LME prices, lower alumina costs, moderating power costs and cost savings initiatives.
Cash flow for the quarter included $17 million in CapEx spending, $11 million in interest payments, $13 million in hedge settlements, $12 million in net borrowings and $5 million in working capital. For Q1, lagged LME of $2,350 per ton is expected to be up about $45 versus Q4 realized prices, with U.S. Midwest premium forecast to be $560 per ton up $90 and European delivery premium expected at $275 per tonne, down about $225 versus the fourth quarter.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Century Aluminum. More…
| Total Revenues | Net Income | Net Margin |
| 2.78k | -14.1 | -1.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Century Aluminum. More…
| Operations | Investing | Financing |
| 25.9 | -85.5 | 74.4 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Century Aluminum. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.47k | 1.07k | 4.32 |
Key Ratios Snapshot
Some of the financial key ratios for Century Aluminum are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 14.8% | -16.8% | 2.3% |
| FCF Margin | ROE | ROA |
| -2.2% | 8.6% | 2.7% |
Price History
As a result, the company’s stock opened at $10.4 that day and closed at the same price, down 0.7% from its prior closing price. The company also announced that they had secured long-term supply agreements with their customers, which will help them recover from the dip in sales. Live Quote…
Analysis
GoodWhale’s analysis of CENTURY ALUMINUM reveals its strengths in asset, growth and profitability, along with a weaker dividend score. This combination of scores leads us to classify it as a ‘cheetah’, a type of company that achieves high revenue or earnings growth but is considered less stable due to lower profitability. When it comes to its financial health, CENTURY ALUMINUM has an intermediate score of 4/10. This suggests that it is likely to pay off debt and fund future operations. Therefore, investors who are looking for a high-growth stock that might offer some stability in terms of profitability, along with the potential for a dividend, might want to consider CENTURY ALUMINUM. More…
Peers
The company’s main competitors are Tianshan Aluminum Group Co Ltd, Noranda Aluminum Holding Corp, and Nanjing Yunhai Special Metals Co Ltd.
– Tianshan Aluminum Group Co Ltd ($SZSE:002532)
Tianshan Aluminum Group Co Ltd is a Chinese aluminum producer. The company has a market cap of 30.98B as of 2022 and a Return on Equity of 16.7%. Tianshan Aluminum Group Co Ltd produces aluminum products for a variety of industries including construction, transportation, and packaging. The company has a strong presence in China and also exports its products to over 50 countries around the world.
– Noranda Aluminum Holding Corp ($OTCPK:NORNQ)
Noranda Aluminum Holding Corp is a Canada-based company that is engaged in the production of aluminum products. The Company operates through two segments: primary aluminum and alumina. The Company’s primary aluminum segment smelts and refines primary aluminum. The Company’s alumina segment mines, refines and markets alumina. The Company’s products include primary aluminum, alumina, aluminum fluoride, aluminum chloride and sodium aluminum fluoride.
– Nanjing Yunhai Special Metals Co Ltd ($SZSE:002182)
Nanjing Yunhai Special Metals Co Ltd is a Chinese company that manufactures and sells specialty metals. It has a market capitalization of 14.83 billion as of 2022 and a return on equity of 18.83%. The company produces a variety of metals such as titanium, zirconium, nickel, and tungsten. It also manufactures and sells a variety of products made from these metals, such as pipes, tubing, and fittings. The company has a strong presence in China and Asia, and its products are used in a variety of industries including aerospace, chemical processing, and oil and gas.
Summary
Century Aluminum‘s Q4 FY2022 earnings results show that revenue has decreased significantly by 287.9% compared to the previous year, and net income has dropped 19.6%. As a result of this decline in performance, investors may be wary of investing in the company. Investors should thoroughly research and assess the company’s current operations and financial situation, as well as its strategies for improvement, before deciding to invest in Century Aluminum. Investors should also consider other potential investments available in the market for comparison purposes.
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