American aluminium producer Century Aluminum released results for the first quarter of 2023 this week. Though production fell in the quarter, the financial results were better in the opening three months.
In the first three months of 2023, Century shipped 169,471 metric tons, down on the quarter from 181,165 metric tons last year. Net sales fell slightly in the first quarter, down from US$552.4 million last year to US$529.9 million this year. Century’s losses narrowed in the quarter, improving from US$113.5 million at the end of last year to US$38.6 million at the opening quarter this year.
Adjusted net loss in the quarter was better on the year, dropping from US$31.3 million in the fourth quarter to US$11.3 million at the end of the first quarter. Meanwhile, adjusted EBITDA showed a vast improvement in the first quarter, going from a loss of US$12.4 million in the fourth quarter to a profit of US$24.1 million in the first quarter.
Century Aluminum’s President and Chief Executive Officer Jesse Gary elaborated upon the first quarter’s results in a related press release.
“Market conditions strengthened in the first quarter, driving a significant improvement in our financial results. U.S. energy prices continued to moderate, with Kentucky power prices falling roughly 50% from fourth quarter levels. Meanwhile, further smelter curtailments in Europe and Yunnan, paired with better than expected aluminum demand, resulted in rising LME prices and regional premiums in the U.S. and Europe. Combined with strong operating performance, these market conditions allowed for good results across our smelters.”
“We are thrilled to be adding Jamalco to our operating portfolio,” Gary went on. “Century is very familiar with this excellent asset and management team, having long been one of Jamalco’s largest customers. Jamalco’s strategic location in the Atlantic basin is in close proximity to all of Century’s operating locations, providing short and secure supply lines and low logistics costs to each of our smelters. Regular supply of Jamalco’s high quality alumina to Century’s smelters will allow for improved operating performance and the vertical integration provided by this acquisition should better position Century to provide consistent financial results through industry cycles.”
“We look forward to joining the greater Jamalco community and becoming an active participant in the Jamaican economy,” Gary concluded. “We welcome our new colleagues with open arms to the Century team and look forward to working with our partner Clarendon Alumina Production Limited to restore Jamalco to its full potential.”