Southern Cross Gold Consolidated Ltd. press release

Albemarle Reports Fourth Quarter and Full Year 2024 Results

2025-02-12

TSX - Toronto Stock Exchange · Australia

PR Newswire

CHARLOTTE, N.C. , Feb. 12, 2025 /PRNewswire/ -- Albemarle Corporation (NYSE: ALB), a global leader in providing essential elements for mobility, energy, connectivity and health, today announced its results for the fourth quarter and full year ended December 31, 2024 .

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Fourth Quarter and Full Year 2024 Results and Highlights (Unless otherwise stated, all percentage changes represent year-over-year comparisons)

Fourth quarter net sales of $1.2 billion ; net income of $75 million , or $0.29 per diluted share; adjusted diluted loss per share of ($1.09) Fourth quarter adjusted EBITDA of $251 million , with year-over-year increases in all business segments (Energy Storage up $290 million , Specialties up $43 million and Ketjen up $4 million ) Full year net sales of $5.4 billion , with Energy Storage sales volumes up 26%; net loss of $1.2 billion , or ($11.20) per diluted share, which included previously announced restructuring charges and asset write-offs; adjusted diluted loss per share of ($2.34) Full year adjusted EBITDA of $1.1 billion , in-line with outlook considerations, due to enterprise-wide cost improvements, volume growth and contract performance Full year cash from operations of $702 million , representing more than 60% operating cash flow conversion (a) , driven primarily by working capital management Introducing new full-year 2025 outlook considerations, including ranges based on updated lithium market price scenarios Further reducing expected full-year 2025 capital expenditures by $100 million ; now targeting capital expenditures in the range of $700 and $800 million , or down more than 50% year-over-year Line of sight to breakeven free cash flow in 2025

| (a) | Defined as Operating Cash Flow divided by Adj. EBITDA, which is a non-GAAP measure. See Non-GAAP Reconciliations for further details. |

"We are taking decisive actions to reduce costs, optimize our conversion network and increase efficiencies to preserve our long-term competitive position," said Kent Masters , chairman and CEO. "As we look ahead, we expect dynamic market conditions to persist but remain confident in our ability to deliver value to stakeholders by increasing our financial flexibility, strengthening our core capabilities and positioning Albemarle for future growth."

Broad Actions Executed and Underway to Maintain Long-Term Competitiveness In 2024 and continuing into 2025, Albemarle has rapidly adjusted to market realities with steps that enhance our resilience, including:

Optimizing conversion network: achieved record production in the fourth quarter at La Negra and Meishan lithium conversion plants; announcing today plans to place Chengdu site into care and maintenance by mid-2025 and to shift a portion of Qinzhou production from hydroxide to carbonate Improving costs and efficiency: streamlined organizational structure; achieved at year-end over 50% run-rate relative to the $300 -400 million cost and productivity improvement target Reducing capital expenditures: proactively re-phased growth investments; reduced 2024 capex by over $450 million year-over-year and plan to significantly reduce further in 2025 Enhancing financial flexibility: pursued multiple cash generation steps and proactively amended credit agreement to fortify balance sheet and navigate near-term dynamics

Fourth Quarter 2024 Results

| In millions, except per share amounts | Q4 2024 | | Q4 2023 | | $ Change | | % Change | | Net sales | $ 1,231.7 | | $ 2,356.2 | | $ (1,124.5) | | (47.7) % | | Net income (loss) attributable to Albemarle Corporation | $ 75.3 | | $ (617.7) | | $ 693.0 | | (112.2) % | | Adjusted EBITDA (a)(b) | $ 250.7 | | $ (134.9) | | $ 385.6 | | (285.8) % | | Diluted earnings (loss) per share attributable to common shareholders | $ 0.29 | | $ (5.26) | | $ 5.55 | | (105.5) % | | Non-operating pension and OPEB items (a) | (0.07) | | (0.07) | | | | | | Non-recurring and other unusual items (a) | (1.31) | | 0.14 | | | | | | Adjusted loss earnings per share attributable to common shareholders (a)(c) | $ (1.09) | | $ (5.19) | | $ 4.10 | | (79.0) % |

| | | | (a) | See Non-GAAP Reconciliations for further details. | | (b) | For comparability, 2023 figures presented under adjusted EBITDA definition that the company adopted beginning in 2024. | | (b) | Totals may not add due to rounding. |

Net sales for the fourth quarter of 2024 were $1.2 billion compared to $2.4 billion for the prior-year quarter, a decline of 48% driven primarily by lower pricing and volumes in Energy Storage, partially offset by higher volumes in Specialties (+3%). Net income attributable to Albemarle of $75 million increased year-over-year by $693 million primarily due to a $604 million lower of cost or net realizable value (LCM) charge recorded in the prior-year quarter and discrete tax benefits of $111 million primarily related to a tax valuation allowance in Australia . Adjusted EBITDA of $251 million increased by $386 million from the prior-year quarter primarily due to favorable volume growth, productivity benefits, and lower cost of goods sold, including the LCM charge in the prior-year quarter, which more than offset margin compression and reduced equity earnings as a result of lower pricing in the lithium value chain.

The effective income tax rate for the fourth quarter of 2024 was 13.8%, compared to (12.9)% in the same period of 2023. The rate in 2023 was impacted by the recording of a tax valuation allowance in China . On an adjusted basis, the effective income tax rates were 446.9% and (12.7)% for the fourth quarters of 2024 and 2023, respectively, with the increase primarily due to changes in geographic income mix and the impact of tax valuation allowances in Australia and China .

Energy Storage Results

| In millions | Q4 2024 | | Q4 2023 | | $ Change | | % Change | | Net Sales | $ 616.8 | | $ 1,675.1 | | $ (1,058.3) | | (63.2) % | | Adjusted EBITDA | $ 133.7 | | $ (156.1) | | $ 289.8 | | (185.6) % |

Energy Storage net sales for the fourth quarter of 2024 were $617 million , a decrease of $1.1 billion , or 63%, due to lower pricing (-53%) and lower volumes (-10%) related to the timing of chemical-grade spodumene sales and planned lithium processing plant outages. Adjusted EBITDA of $134 million increased $290 million , as the benefit of lower spodumene costs and a $604 million LCM charge recorded in the fourth quarter of 2023 more than offset the impact of lower year-over-year pricing and volumes.

Specialties Results

| In millions | Q4 2024 | | Q4 2023 | | $ Change | | % Change | | Net Sales | $ 332.9 | | $ 339.6 | | $ (6.7) | | (2.0) % | | Adjusted EBITDA | $ 72.9 | | $ 29.8 | | $ 43.0 | | 144.2 % |

Specialties net sales for the fourth quarter of 2024 were $333 million , a decrease of $7 million , or 2%, primarily due to lower prices (-5%), which more than offset higher volumes (+3%). Adjusted EBITDA of $73 million increased $43 million versus the year-ago quarter, as productivity benefits and improved end-market demand more than offset lower prices.

Ketjen Results

| In millions | Q4 2024 | | Q4 2023 | | $ Change | | % Change | | Net Sales | $ 281.9 | | $ 341.5 | | $ (59.5) | | (17.4) % | | Adjusted EBITDA | $ 35.8 | | $ 31.3 | | $ 4.5 | | 14.4 % |

Ketjen net sales for the fourth quarter of 2024 were $282 million , down 17% compared to the prior-year quarter as higher prices (+1%) were more than offset by lower volumes (-19%), primarily due to timing of sales volumes. Adjusted EBITDA of $36 million increased $4 million , driven by favorable product mix and lower input costs, partly offset by timing of sales volumes.

2025 Outlook Considerations

Total Corporate Outlook Considerations The table below reflects expected outcomes for the total company based on recently observed lithium market price scenarios. Ranges are based on variation in sales volume and mix, including a projected increase in Energy Storage volumes of 0% to 10% in 2025 compared to 2024. All three scenarios assume flat market pricing flowing through Energy Storage's current contract book. Scenarios also assume spodumene pricing averages 10% of the lithium carbonate equivalent (LCE) price, while other costs are assumed to be constant.

| | Total Corporate FY 2025E

| | | | (a) | Price represents blend of relevant market pricing including spot and regional indices for the periods referenced. | | (b) | The company does not provide a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP, as the company is unable to estimate significant non-recurring or unusual items without unreasonable effort. See "Additional information regarding Non-GAAP Measures" for more information. |

Energy Storage Market Price Scenarios

| | | | (a) | Price represents blend of relevant market pricing including spot and regional indices for the periods referenced. | | (b) | Included in adjusted EBITDA on a pre-tax basis. |

Specialties and Ketjen Outlook Considerations Specialties outlook reflects modest volume growth in key end markets led by pharma, automotive, and oilfield, partially offset by weakness in building and construction.

Ketjen outlook assumes favorable product revenue mix, lower input costs and the continuation of its turnaround plan execution.

Other Corporate Outlook Considerations Albemarle expects its 2025 capital expenditures to be in the range of $700 million to $800 million , down more than 50% from $1.7 billion in 2024. This level of spending reflects a prioritization on sustaining existing assets and resources, with the remainder allocated to select growth projects and high-return, quick payback improvements.

| (a) | Adjusted effective tax rate dependent on lithium market prices and geographic income mix |

Cash Flow and Capital Deployment Cash from operations of $702 million for the year ended December 31, 2024 decreased $623 million compared to the prior-year period. This was driven by lower adjusted EBITDA and reduced dividends received from equity investments, partially offset by inflows from working capital. Capital expenditures of $1.7 billion were in-line with outlook considerations and decreased by $463 million versus the prior-year period, reflecting the impact of decisions that stopped or slowed spending and the completion of capacity expansions in Energy Storage and Specialties.

Balance Sheet and Liquidity As of December 31, 2024 , Albemarle had estimated liquidity of approximately $2.8 billion , including $1.2 billion of cash and equivalents, $1.5 billion available under its revolver and $99 million available on other credit lines. Total debt was $3.5 billion , representing a debt covenant net debt to adjusted EBITDA of approximately 2.6 times.

Earnings Call

The company's earnings presentation and supporting material are available on Albemarle's website at https://investors.albemarle.com .

About Albemarle Albemarle Corporation (NYSE: ALB) is a global leader in transforming essential resources into critical ingredients for mobility, energy, connectivity, and health. We partner to pioneer new ways to move, power, connect and protect with people and planet in mind. A reliable and high-quality global supply of lithium and bromine allow us to deliver advanced solutions for our customers. Learn more about how the people of Albemarle are enabling a more resilient world at albemarle.com and on X (formerly Twitter) @AlbemarleCorp.

Albemarle regularly posts information to www.albemarle.com , including notification of events, news, financial performance, investor presentations and webcasts, non-GAAP reconciliations, Securities and Exchange Commission ("SEC") filings and other information regarding the company, its businesses and the markets it serves.

Forward-Looking Statements This press release contains statements concerning our expectations, anticipations and beliefs regarding the future, which constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are based on assumptions that we have made as of the date hereof and are subject to known and unknown risks and uncertainties, often contain words such as "anticipate," "believe," "estimate," "expect," "guidance," "intend," "may," "outlook," "scenario," "should," "would," and "will". Forward-looking statements may include statements regarding: our 2025 company and segment outlooks, including expected market pricing of lithium and spodumene and other underlying assumptions and outlook considerations; expected capital expenditure amounts and the corresponding impact on cash flow; market pricing of lithium carbonate equivalent and spodumene; plans and expectations regarding other projects and activities, cost reductions and accounting charges, and all other information relating to matters that are not historical facts. Factors that could cause Albemarle's actual results to differ materially from the outlook expressed or implied in any forward-looking statement include: changes in economic and business conditions; financial and operating performance of customers; timing and magnitude of customer orders; fluctuations in lithium market prices; production volume shortfalls; increased competition; changes in product demand; availability and cost of raw materials and energy; technological change and development; fluctuations in foreign currencies; changes in laws and government regulation; regulatory actions, proceedings, claims or litigation; cyber-security breaches, terrorist attacks, industrial accidents or natural disasters; political unrest; changes in inflation or interest rates; volatility in the debt and equity markets; acquisition and divestiture transactions; timing and success of projects; performance of Albemarle's partners in joint ventures and other projects; changes in credit ratings; and the other factors detailed from time to time in the reports Albemarle files with the SEC, including those described under "Risk Factors" in Albemarle's most recent Annual Report on Form 10-K and any subsequently filed Quarterly Reports on Form 10-Q, which are filed with the SEC and available on the investor section of Albemarle's website (investors.albemarle.com) and on the SEC's website at www.sec.gov . These forward-looking statements speak only as of the date of this press release. Albemarle assumes no obligation to provide any revisions to any forward-looking statements should circumstances change, except as otherwise required by securities and other applicable laws.

| Albemarle Corporation and Subsidiaries

Consolidated Statements of Income (Loss)

(In Thousands Except Per Share Amounts) (Unaudited) | | | | | | | | | | | | | | | | | | | Three Months Ended | | Year Ended | | | | | | | December 31, | | December 31, | | | | | | | 2024 | | 2023 | | 2024 | | 2023 | | Net sales | $ 1,231,713 | | $ 2,356,165 | | $ 5,377,526 | | $ 9,617,203 | | Cost of goods sold | 1,093,500 | | 3,060,217 | | 5,314,987 | | 8,431,294 | | Gross profit (loss) | 138,213 | | (704,052) | | 62,539 | | 1,185,909 | | Selling, general and administrative expenses | 135,996 | | 193,956 | | 618,048 | | 910,002 | | Restructuring charges and asset write-offs | (22,206) | | 295 | | 1,134,316 | | 9,491 | | Research and development expenses | 20,021 | | 22,753 | | 86,720 | | 85,725 | | Gain on change in interest in properties/sale of business, net | — | | (71,190) | | — | | (71,190) | | Operating profit (loss) | 4,402 | | (849,866) | | (1,776,545) | | 251,881 | | Interest and financing expenses | (44,703) | | (34,386) | | (165,619) | | (116,072) | | Other income (expenses), net | 117,028 | | (36,699) | | 178,339 | | 110,929 | | Income (loss) before income taxes and equity in net income of unconsolidated investments | 76,727 | | (920,951) | | (1,763,825) | | 246,738 | | Income tax expense | 10,613 | | 118,878 | | 87,085 | | 430,277 | | Income (loss) before equity in net income of unconsolidated investments | 66,114 | | (1,039,829) | | (1,850,910) | | (183,539) | | Equity in net income of unconsolidated investments (net of tax) | 18,997 | | 436,537 | | 715,433 | | 1,854,082 | | Net (loss) income from continuing operations | 85,111 | | (603,292) | | (1,135,477) | | 1,670,543 | | Income from discontinued operations (net of tax) | — | | — | | — | | — | | Net income (loss) | 85,111 | | (603,292) | | (1,135,477) | | 1,670,543 | | Net income attributable to noncontrolling interests | (9,818) | | (14,388) | | (43,972) | | (97,067) | | Net income (loss) attributable to Albemarle Corporation | 75,293 | | (617,680) | | (1,179,449) | | 1,573,476 | | Mandatory convertible preferred stock dividends | (41,688) | | — | | (136,647) | | — | | Net income (loss) attributable to Albemarle Corporation common shareholders | $ 33,605 | | $ (617,680) | | $ (1,316,096) | | $ 1,573,476 | | Basic earnings (loss) per share attributable to common shareholders | $ 0.29 | | $ (5.26) | | $ (11.20) | | $ 13.41 | | Diluted earnings (loss) per share attributable to common shareholders | $ 0.29 | | $ (5.26) | | $ (11.20) | | $ 13.36 | | | | | | | | | | | Weighted-average common shares outstanding – basic | 117,549 | | 117,354 | | 117,516 | | 117,317 | | Weighted-average common shares outstanding – diluted | 117,723 | | 117,354 | | 117,516 | | 117,766 |

| Albemarle Corporation and Subsidiaries

Condensed Consolidated Balance Sheets

(In Thousands) (Unaudited) | | | | | | | | | | | December 31, | | December 31, | | | 2024 | | 2023 | | ASSETS | | | | | Current assets: | | | | | Cash and cash equivalents | $ 1,192,230 | | $ 889,900 | | Trade accounts receivable | 742,201 | | 1,213,160 | | Other accounts receivable | 238,384 | | 509,097 | | Inventories | 1,502,531 | | 2,161,287 | | Other current assets | 166,916 | | 443,475 | | Total current assets | 3,842,262 | | 5,216,919 | | Property, plant and equipment | 12,523,368 | | 12,233,757 | | Less accumulated depreciation and amortization | 3,191,898 | | 2,738,553 | | Net property, plant and equipment | 9,331,470 | | 9,495,204 | | Investments | 1,117,739 | | 1,369,855 | | Other assets | 504,711 | | 297,087 | | Goodwill | 1,582,714 | | 1,629,729 | | Other intangibles, net of amortization | 230,753 | | 261,858 | | Total assets | $ 16,609,649 | | $ 18,270,652 | | LIABILITIES AND EQUITY | | | | | Current liabilities: | | | | | Accounts payable to third parties | $ 793,455 | | $ 1,537,859 | | Accounts payable to related parties | 150,432 | | 550,186 | | Accrued expenses | 467,997 | | 544,835 | | Current portion of long-term debt | 398,023 | | 625,761 | | Dividends payable | 61,282 | | 46,666 | | Income taxes payable | 95,275 | | 255,155 | | Total current liabilities | 1,966,464 | | 3,560,462 | | Long-term debt | 3,118,142 | | 3,541,002 | | Postretirement benefits | 31,930 | | 26,247 | | Pension benefits | 116,192 | | 150,312 | | Other noncurrent liabilities | 819,204 | | 769,100 | | Deferred income taxes | 358,029 | | 558,430 | | Commitments and contingencies | | | | | Equity: | | | | | Albemarle Corporation shareholders' equity: | | | | | Common stock | 1,176 | | 1,174 | | Mandatory convertible preferred stock | 2,235,105 | | — | | Additional paid-in-capital | 2,985,606 | | 2,952,517 | | Accumulated other comprehensive loss | (742,062) | | (528,526) | | Retained earnings | 5,481,692 | | 6,987,015 | | Total Albemarle Corporation shareholders' equity | 9,961,517 | | 9,412,180 | | Noncontrolling interests | 238,171 | | 252,919 | | Total equity | 10,199,688 | | 9,665,099 | | Total liabilities and equity | $ 16,609,649 | | $ 18,270,652 |

Albemarle Reports Fourth Quarter and Full Year 2024 Results

Fourth Quarter 2024 Results

Energy Storage Results

Specialties Results

Ketjen Results

2025 Outlook Considerations

Energy Storage Market Price Scenarios

Earnings Call

Earlier from Southern Cross Gold Consolidated Ltd.