Century Aluminum Reports Q3 2024 Financials, Net Income of $47.3 Million, Despite Decline in Sales

Century Aluminum Company reported significant financial developments for the nine months ended September 30, 2024, highlighted by a bargain purchase gain of $245.9 million from its acquisition of Jamalco, completed on May 2, 2023, for a nominal price of $1.00 due to the seller's financial distress. Adjustments in Q1 2024 reduced the recognized gain to $216.9 million. The operations of Jamalco have been included in Century's consolidated financial statements since the acquisition.

For the third quarter of 2024, Century Aluminum achieved net sales of $539.1 million, a decrease from $560.8 million in the previous quarter and $1,589.4 million for the nine months, down from $1,673.1 million in the same period of 2023. Despite the decline in sales, gross profit for Q3 2024 surged to $81.8 million, up from $20.4 million in Q2 2024, while net income attributable to Century stockholders was $47.3 million, a stark contrast to a net loss of $2.5 million in the prior quarter.

The company faced curtailment charges of approximately $2.7 million for Q3 2024, with total charges for the nine months reaching $5.0 million, significantly lower than the $13.4 million incurred in the same period of 2023. The reduction in curtailment charges reflects improved operational efficiency and market conditions.

Century's relationship with Glencore remains pivotal, with approximately 61.1% of consolidated net sales derived from Glencore for the nine months ended September 30, 2024, down from 74.1% in the prior year. Net sales to Glencore totaled $971.3 million, a decrease from $1,240.3 million in the same period of 2023.

The company reported a total debt of $485.7 million as of September 30, 2024, slightly up from $479.2 million at the end of 2023. Century has been proactive in managing its financial obligations, with a total liquidity position of $278.9 million, including unused availability under revolving credit facilities.

In terms of operational challenges, Century faced power disruptions at Jamalco starting in June 2023, which had a cumulative impact of approximately $38.8 million. However, production returned to full capacity by October 2023. Additionally, Hurricane Beryl impacted operations in July 2024, but production resumed shortly thereafter.

The company continues to navigate market volatility, particularly in aluminum pricing influenced by global supply-demand dynamics and geopolitical conditions. Century Aluminum's strategic focus remains on enhancing operational efficiency and leveraging its recent acquisitions to bolster its market position.