CleanTech Lithium PLC Remaining Outcomes

Albemarle Company (NYSE: ALB), a world chief in offering important parts for mobility, vitality, connectivity and well being, right now introduced its outcomes for the primary quarter ended March 31, 2023 .

First-Quarter 2023 and Latest Highlights
(Except in any other case said, all share adjustments signify year-over-year comparisons)

• Web gross sales of $2.6 billion , a rise of 129%
• Web revenue of $1.2 billion , or $10.51 per diluted share, a rise of 389%
• Adjusted diluted EPS of $10.32 , a rise of 334%
• Adjusted EBITDA of $1.6 billion , a rise of 269%
• Chosen U.S. lithium processing facility location in Richburg , South Carolina
• Signed definitive agreements with Mineral Sources Restricted (“MinRes”) to restructure the MARBL Lithium Joint Enterprise in Australia and individually for MinRes to spend money on Albemarle’s conversion belongings in China
• Reached remaining funding resolution to construct Kemerton trains III & IV
• Adjusting 2023 steering to mirror present lithium market pricing; Web gross sales are actually anticipated to extend roughly 35% to 55% year-over-year and adjusted EBITDA now anticipated to vary from (5%) to fifteen% year-over-year

“In comparison with final 12 months, first quarter web gross sales greater than doubled, adjusted diluted earnings per share greater than quadrupled offering a strong begin to the 12 months,” commented Albemarle CEO Kent Masters . “We see robust gross sales quantity progress for the remainder of the 12 months however have modified our steering to mirror softening lithium market pricing. We stay assured within the underlying market power of our world-class asset base and our long-term progress technique.”

2023 Company Outlook
The corporate is revising full-year 2023 outlook to mirror present lithium market pricing. Web gross sales are anticipated to extend 35% to 55% over prior 12 months, primarily pushed by a continued world shift to electrical automobiles. The year-over-year change in Adjusted EBITDA is anticipated to be within the vary of (5%) to fifteen% as increased web gross sales are partially offset by timing impacts of upper priced inventories. The corporate expects to take care of optimistic free money movement. The corporate’s capital expenditures are anticipated to be between $1.7 billion and $1.9 billion for 2023.

First Quarter 2023 Outcomes

Web gross sales for the primary quarter of 2023 had been $2.6 billion in comparison with $1.1 billion for the prior-year quarter. The 129% enhance was pushed by increased lithium costs and volumes. Web revenue attributable to Albemarle of $1.2 billion elevated by $1.0 billion from the prior 12 months’s quarter. Adjusted EBITDA of $1.6 billion elevated by $1.2 billion from the prior-year quarter primarily as a consequence of increased web gross sales.

The efficient revenue tax price for the primary quarter of 2023 was 23.9% in comparison with 26.9% in the identical interval of 2022. On an adjusted foundation, the efficient revenue tax charges had been 23.6% and 18.9% for the primary quarter of 2023 and 2022, respectively, with the rise primarily as a consequence of adjustments within the geographic revenue combine.

Enterprise Phase Outcomes
Starting January 1, 2023 , the corporate re-segmented its working segments. The outcomes from 2022 are restated to align with the brand new construction.

Vitality Storage Outcomes

Vitality Storage web gross sales for the primary quarter of 2023 had been $1.9 billion , a rise of $1.5 billion (+319%) as a consequence of increased pricing web of FX (+301%) associated to renegotiated contracts and elevated market pricing. Quantity was additionally increased (+18%) associated to the La Negra III/IV enlargement in Chile , manufacturing from our processing plant in Qinzhou, China , and better tolling volumes to satisfy rising buyer demand. Adjusted EBITDA of $1.4 billion elevated $1.1 billion as increased pricing and volumes greater than offset increased prices.

On February 22, 2023 , Albemarle signed a definitive settlement with MinRes to restructure its MARBL Lithium Joint Enterprise in Australia to allow every companion to ship long-term worth to its clients. Albemarle additionally obtained new funding by MinRes in Albemarle’s conversion belongings in China . MinRes will purchase a 50% curiosity in Albemarle’s 100%-owned Qinzhou and Meishan crops in China .

2023 Vitality Storage Outlook
Vitality Storage web gross sales are estimated to vary between $6.9 to $8.4 billion . Vitality Storage volumes are projected to be up 30% to 40% in 2023 in comparison with 2022. Full 12 months realized pricing is anticipated to be up 20% to 30% vs. the prior 12 months, assuming flat lithium market pricing as of mid-April 2023 . Adjusted EBITDA anticipated to vary between $2.7 and $3.4 billion as increased priced spodumene inventories greater than offset increased pricing.

Albemarle continues to increase its world portfolio of conversion capability and utilization of its world-class useful resource portfolio:

Chile

–  The Salar Yield Enchancment Venture is on schedule for mechanical completion by the center of 2023

Australia

–  Kemerton I is working and producing product topic to buyer qualification
–  Kemerton II is progressing by means of commissioning
–  Reached remaining funding resolution to construct Kemerton trains III & IV

China

–  Meishan building progressing on price range and on schedule with mechanical completion anticipated in 2024

United States

– Richburg website in South Carolina chosen for U.S. lithium processing facility
– Kings Mountain mine research proceed to progress
–  Silver Peak new wells and enlargement tasks proceed to progress

Specialties Outcomes

Specialties web gross sales for the primary quarter of 2023 had been $418.8 million , a lower of $27.4 million (-6%) primarily as a consequence of decrease volumes (-15%), partially offset by elevated pricing web of FX (+9%) primarily in our lithium specialties division. Volumes had been impacted by weaker demand throughout the product portfolio. Adjusted EBITDA of $162.2 million elevated $9.6 million as increased pricing and decrease freight prices had been partially offset by decrease volumes.

2023 Specialties Outlook
Albemarle is reaffirming its 2023 outlook for Specialties web gross sales to vary between $1.8 billion to $1.9 billion , with adjusted EBITDA estimated from $555 million to $585 million . Adjusted EBITDA margins are anticipated to be roughly flat year-over-year.

Ketjen Outcomes

Ketjen web gross sales of $217.8 million for the primary quarter of 2023 had been flat in comparison with the earlier 12 months as a consequence of increased pricing web of FX (+12%) offset by decrease volumes (-12%). Adjusted EBITDA of $14.5 million declined $2.4 million as a consequence of increased uncooked materials prices, mixed with freeze associated downtime and timing of some shipments that had been pushed into the second quarter of 2023.

2023 Ketjen Outlook
Albemarle expects Ketjen web gross sales in 2023 to vary between $1.0 billion and $1.1 billion , with adjusted EBITDA within the vary of $100 million to $140 million . Adjusted EBITDA steering is up from prior steering because the phase is benefiting from a restoration in refining pricing and managing processing prices.

Stability Sheet and Liquidity
As of March 31, 2023, Albemarle had estimated liquidity of roughly $3.3 billion , together with $1.6 billion of money and equivalents, the total $1.5 billion beneath its revolver and $180.5 million out there on different credit score strains. Whole debt was $3.2 billion , representing our debt covenant web debt to adjusted EBITDA of roughly 0.4 instances.

Money Circulation and Capital Deployment
Money from operations of $721.0 million elevated $514.8 million versus the prior 12 months interval. This was pushed by elevated adjusted EBITDA and dividends acquired from fairness investments, partially offset by working capital adjustments, that had been primarily as a result of enhance in receivables and inventories from increased lithium pricing. Capital expenditures of $415.6 million elevated by $183.9 million versus the prior 12 months interval as the corporate invested in lithium and bromine capability to assist progress.

Albemarle’s major capital allocation priorities are to spend money on natural and inorganic alternatives to drive worthwhile progress, preserve its monetary flexibility and funding grade credit standing, and fund its dividends.

Earnings Name

The corporate’s earnings presentation and supporting materials can be found on Albemarle’s web site at https://traders.albemarle.com.

About Albemarle
Albemarle Company (NYSE: ALB) leads the world in remodeling important sources into essential elements for mobility, vitality, connectivity, and well being. We companion to pioneer new methods to maneuver, energy, join and shield with individuals and planet in thoughts. A dependable and high-quality world provide of lithium and bromine permit us to ship superior options for our clients.  Be taught extra about how the individuals of Albemarle are enabling a extra resilient world at albemarle.com and on Twitter @AlbemarleCorp.

Albemarle commonly posts info to www.albemarle.com , together with notification of occasions, information, monetary efficiency, investor shows and webcasts, non-GAAP reconciliations, Securities and Change Fee (“SEC”) filings and different info concerning the corporate, its companies and the markets it serves.

Ahead-Trying Statements
This press launch comprises statements regarding our expectations, anticipations and beliefs concerning the long run, which represent “forward-looking statements” inside the which means of the Personal Securities Litigation Reform Act of 1995. These forward-looking statements, that are primarily based on assumptions that now we have made as of the date hereof and are topic to identified and unknown dangers and uncertainties, usually comprise phrases reminiscent of “anticipate,” “consider,” “estimate,” “count on,” “steering,” “intend,” “could,” “outlook,” “ought to,” “would,” and “will”. Ahead-looking statements could embrace statements concerning anticipated: monetary and working outcomes, manufacturing capability, volumes, and pricing, demand for Albemarle’s merchandise, capital tasks, acquisition and divestiture transactions, market and financial traits, and all different info regarding issues that aren’t historic details. Components that would trigger Albemarle’s precise outcomes to vary materially from the outlook expressed or implied in any forward-looking assertion embrace: adjustments in financial and enterprise circumstances; monetary and working efficiency of consumers; timing and magnitude of buyer orders; fluctuations in lithium market pricing; manufacturing quantity shortfalls; elevated competitors; adjustments within the product demand; availability and value of uncooked supplies and vitality; technological change and improvement; fluctuations in foreign currency; adjustments in legal guidelines and authorities regulation; regulatory actions, proceedings, claims or litigation; cyber-security breaches, terrorist assaults, industrial accidents or pure disasters; political unrest; adjustments in inflation or rates of interest; volatility within the debt and fairness markets; acquisition and divestiture transactions; timing and success of tasks; efficiency of Albemarle’s companions in joint ventures and different tasks; adjustments in credit score scores; and the opposite elements detailed every so often within the studies Albemarle information with the SEC, together with these described beneath “Danger Components” in Albemarle’s most up-to-date Annual Report on Type 10-Ok and any subsequently filed Quarterly Experiences on Type 10-Q, that are filed with the SEC and out there on the investor part of Albemarle’s web site (traders.albemarle.com) and on the SEC’s web site at www.sec.gov . These forward-looking statements communicate solely as of the date of this press launch. Albemarle assumes no obligation to offer any revisions to any forward-looking statements ought to circumstances change, besides as in any other case required by securities and different relevant legal guidelines.

See accompanying non-GAAP reconciliations beneath.

Extra Info concerning Non-GAAP Measures
It ought to be famous that adjusted web revenue attributable to Albemarle Company, adjusted diluted earnings per share, non-operating pension and different post-employment profit (“OPEB”) gadgets per diluted share, non-recurring and different uncommon gadgets per diluted share, adjusted efficient revenue tax charges, EBITDA, adjusted EBITDA (on a consolidated foundation), EBITDA margin and adjusted EBITDA margin are monetary measures that aren’t required by, or offered in accordance with, accounting ideas typically accepted in the US , or GAAP. These non-GAAP measures shouldn’t be thought-about as options to Web revenue attributable to Albemarle Company (“earnings”) or different comparable measures calculated and reported in accordance with GAAP. These measures are offered right here to offer further helpful measurements to assessment the corporate’s operations, present transparency to traders and allow period-to-period comparability of economic efficiency. The corporate’s chief working resolution maker makes use of these measures to evaluate the continued efficiency of the corporate and its segments, in addition to for enterprise and enterprise planning functions.

An outline of different non-GAAP monetary measures that Albemarle makes use of to guage its operations and monetary efficiency, and reconciliation of those non-GAAP monetary measures to probably the most immediately comparable monetary measures calculated and reported in accordance with GAAP will be discovered on the next pages of this press launch, which can be is on the market on Albemarle’s web site at https://investors.albemarle.com . The corporate doesn’t present a reconciliation of forward-looking non-GAAP monetary measures to probably the most immediately comparable monetary measures calculated and reported in accordance with GAAP, as the corporate is unable to estimate vital non-recurring or uncommon gadgets with out unreasonable effort. The quantities and timing of this stuff are unsure and could possibly be materials to the corporate’s outcomes calculated in accordance with GAAP.

ALBEMARLE CORPORATION AND SUBSIDIARIES

Non-GAAP Reconciliations

(Unaudited)

See beneath for a reconciliation of adjusted web revenue attributable to Albemarle Company, EBITDA and adjusted EBITDA (on a consolidated foundation), that are non-GAAP monetary measures, to Web revenue attributable to Albemarle Company (“earnings”), probably the most immediately comparable monetary measure calculated and reported in accordance with GAAP. Reconciliation of adjusted EBITDA on a phase foundation can be offered. Adjusted web revenue attributable to Albemarle Company is outlined as web revenue earlier than the non-recurring, different uncommon and non-operating pension and different post-employment profit (OPEB) gadgets as listed beneath. The non-recurring and weird gadgets could embrace acquisition and integration associated prices, positive factors or losses on gross sales of companies, restructuring costs, facility divestiture costs, sure litigation and arbitration prices and costs, and different vital non-recurring gadgets. EBITDA is outlined as web revenue attributable to Albemarle Company earlier than curiosity and financing bills, revenue tax expense, and depreciation and amortization. Adjusted EBITDA is outlined as EBITDA plus or minus the non-recurring, different uncommon and non-operating pension and OPEB gadgets as listed beneath.

Non-operating pension and OPEB gadgets, consisting of mark-to-market actuarial positive factors/losses, settlements/curtailments, curiosity price and anticipated return on belongings, should not allotted to Albemarle’s working segments and are included within the Company class. As well as, the corporate believes that these elements of pension price are primarily pushed by market efficiency, and the corporate manages these individually from the operational efficiency of the corporate’s companies. In accordance with GAAP, these non-operating pension and OPEB gadgets are included in Different revenue (bills), web. Non-operating pension and OPEB gadgets had been as follows (in hundreds):

Along with the non-operating pension and OPEB gadgets disclosed above, the corporate has recognized sure different gadgets and excluded them from Albemarle’s adjusted web revenue calculation for the durations offered. A list of this stuff, in addition to an in depth description of every follows beneath (per diluted share):

See beneath for a reconciliation of the adjusted efficient revenue tax price, the non-GAAP monetary measure, to the efficient revenue tax price, probably the most immediately comparable monetary measure calculated and reported in accordance with GAAP (in hundreds, besides percentages).

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SOURCE Albemarle Company