Alcoa(AA) - 2024 Q3 - Quarterly Results

Financial Performance - Net income increased sequentially to $90 million, or$0.38 per common share, reflecting higher alumina prices and lower raw material costs[2][4] - Adjusted EBITDA excluding special items increased sequentially to $455 million, primarily due to higher alumina prices and lower raw material costs[2][5] - Net income attributable to Alcoa Corporation for the quarter ended September 30, 2024, was$90 million, compared to a net loss of $168 million in the same period last year[22] - Basic earnings per share (EPS) for the quarter ended September 30, 2024, was$0.39, compared to a loss of $0.94 in the same period last year[19] - Diluted EPS for the quarter ended September 30, 2024, was$0.38, compared to a loss of $0.94 in the same period last year[20] - For the nine months ended September 30, 2024, Alcoa reported a net loss of$142 million, an improvement from a net loss of $501 million in the same period last year[24] - Net loss attributable to Alcoa Corporation for the nine months ended September 30, 2024, was$651 million, compared to a net income of $90 million in the same period of 2023[30] - Adjusted EBITDA for Q3 2024 was$429 million, compared to $291 million in Q2 2024 and$68 million in Q3 2023[37] - Free cash flow for Q3 2024 was -$3 million, compared to$123 million in Q2 2024 and -$76 million in Q3 2023[40] Production and Shipments - Alumina production decreased 4$2,904 million, a slight decrease from $2,906 million in the previous quarter but an increase from$2,602 million in the same quarter last year[22] - Total sales for the nine months ended September 30, 2024, were $8,409 million, up from$7,956 million in the same period last year[24] - Third-party alumina sales in 3Q23 were $846 million, with an average realized price of$354 per metric ton[32] - Third-party aluminum sales in 3Q23 were $1,644 million, with an average realized price of$2,647 per metric ton[32] - Sales for Q3 2024 were $2.904 billion, compared to$2.906 billion in Q2 2024 and $2.602 billion in Q3 2023[46] Costs and Expenses - Cost of goods sold for the nine months ended September 30, 2024, was$7,330 million, slightly lower than $7,388 million in the same period last year[24] - Research and development expenses for the nine months ended September 30, 2024, increased to$40 million from $25 million in the same period last year[24] - Provision for depreciation, depletion, and amortization for the nine months ended September 30, 2024, was$483 million, up from $469 million in the same period last year[24] - Restructuring and other charges for the nine months ended September 30, 2024, were$250 million, compared to $195 million in the same period last year[24] - Restructuring and other charges for the quarter ended September 30, 2024, amounted to$30 million[35] - Other special items for the quarter ended September 30, 2024, included a net unfavorable change in mark-to-market energy derivative instruments of $31 million[35] Acquisitions and Divestitures - The company completed the acquisition of Alumina Limited on August 1, 2024, strengthening its market leadership[2][6] - Alcoa announced the sale of its 25.1$1.1 billion, expected to close in the first half of 2025[6] Agreements and Contracts - Alcoa secured a new 9-year power agreement with AGL Energy Limited for 287 megawatts to support operations at the Portland Aluminium Smelter starting July 1, 2026[8] - The company announced a long-term agreement to supply up to 16.5 million tonnes of smelter grade alumina to Aluminium Bahrain B.S.C. over 10 years[9] Tax and Operational Expenses - Alcoa expects fourth quarter 2024 operational tax expense to approximate $120 million to$130 million, subject to market conditions and jurisdictional profitability[12] Cash Flow and Liquidity - Cash and cash equivalents increased to $1,313 million as of September 30, 2024, up from$944 million at the end of 2023, reflecting a 39.1% increase[26] - Net cash provided from operations improved to $207 million for the nine months ended September 30, 2024, compared to a net cash used of$107 million in the same period of 2023[29] - Cash and cash equivalents and restricted cash at the end of the period stood at $1,410 million, a 36.9$1,030 million at the end of the same period in 2023[29] - Net debt as of September 30, 2024, was $1.632 billion, compared to$923 million as of December 31, 2023[42] - Adjusted net debt as of September 30, 2024, was $2.213 billion, compared to$1.580 billion as of December 31, 2023[45] Assets and Liabilities - Total current assets rose to $4,866 million, a 10.5$4,405 million at the end of 2023[26] - Long-term debt increased significantly to $2,469 million, up 42.5$1,732 million at the end of 2023[26] - Total liabilities increased to $9,292 million as of September 30, 2024, up 11.8$8,310 million at the end of 2023[26] - Receivables from customers increased to $862 million as of September 30, 2024, up 31.4$656 million at the end of 2023[26] - Total debt as of September 30, 2024, was $2.945 billion, compared to$1.867 billion as of December 31, 2023[45] - Cash and cash equivalents as of September 30, 2024, were $1.313 billion, compared to$944 million as of December 31, 2023[45] Segment Performance - Segment Adjusted EBITDA for Alumina in 3Q23 was $53 million, while Aluminum segment Adjusted EBITDA was$79 million[32] - Total Segment Adjusted EBITDA for the nine months ended September 30, 2024, was $734 million, compared to$547 million in the same period of 2023, a 34.2% increase[30] Capital Expenditures - Capital expenditures for the nine months ended September 30, 2024, were $411 million, up 19.8$343 million in the same period of 2023[29] - Capital expenditures for Q3 2024 were $146 million, compared to$164 million in Q2 2024 and $145 million in Q3 2023[40] Working Capital - Days working capital for Q3 2024 was 45 days, compared to 41 days in Q2 2024 and 50 days in Q3 2023[46] - DWC working capital for Q3 2024 was$1.414 billion, compared to $1.295 billion in Q2 2024 and$1.409 billion in Q3 2023[46] Adjusted Metrics - Net income attributable to Alcoa Corporation for the quarter ended September 30, 2024, was $90 million, with adjusted net income at$135 million[35] - Diluted EPS for the quarter ended September 30, 2024, was $0.38, with adjusted diluted EPS at$0.57[35]