Albemarle(US:ALB)2024-07-31 20:41Financial Performance - Net sales for Q2 2024 were $1,430,385, a decrease of 40% from $2,370,190 in Q2 2023, primarily due to lower lithium carbonate and hydroxide market pricing in Energy Storage[151]. - Total net sales decreased by 40% to $1,430,385 thousand in Q2 2024 from $2,370,190 thousand in Q2 2023[165]. - Year-to-date net sales for 2024 were $2,791,121 thousand, down 44% from $4,950,442 thousand in 2023, mainly due to lower lithium carbonate and hydroxide pricing[174]. - Net income attributable to Albemarle Corporation for YTD 2024 was $(185,750) thousand, a decrease of $(2,074,373) thousand or NM compared to YTD 2023[183]. - Energy Storage segment net sales dropped by 53% to $830,110 thousand, primarily due to unfavorable pricing impacts[169]. - Specialties segment net sales decreased by 10% to $334,600 thousand, reflecting a decline in demand[170]. - Ketjen segment net sales increased by 13% to $265,675 thousand, driven by higher sales volume across all divisions[171]. - Adjusted EBITDA fell by 69% to $386,360 thousand in Q2 2024 compared to $1,266,242 thousand in Q2 2023[165]. - Adjusted EBITDA for the Energy Storage segment fell by 82% to $480,975 thousand from $2,732,772 thousand in YTD 2023[188]. - Specialties segment net sales decreased by 18% to $650,665 thousand, with adjusted EBITDA down 55% to $99,356 thousand[188]. - Ketjen segment net sales increased by 12% to $509,448 thousand, with adjusted EBITDA rising by 4% to $59,815 thousand[190]. Cash Flow and Liquidity - The company recorded a cash flow from operations of $362.9 million during Q2 2024, an increase of 392% from the prior year quarter[142]. - Cash provided by operations in the first six months of 2024 was $460.8 million, down from $794.7 million in the same period of 2023[194]. - Cash and cash equivalents increased by $940.3 million to $1.8 billion at June 30, 2024, compared to $889.9 million at December 31, 2023[194]. - The company anticipates that cash on hand and cash from operations will be sufficient to meet operating expenses and fund capital expenditures for the foreseeable future[193]. - Cash and cash equivalents totaled $1.8 billion at June 30, 2024, with $1.1 billion held by foreign subsidiaries[229]. - The company repaid a net amount of $620.0 million of commercial paper notes during the six months ended June 30, 2024, using proceeds from the issuance of mandatory convertible preferred stock[209]. Expenses and Cost Management - Selling, general and administrative expenses decreased by $228,122 thousand or (57)% to $168,948 thousand in Q2 2024, with a percentage of net sales at 11.8% compared to 16.8% in Q2 2023[153]. - Selling, general and administrative expenses decreased by 37% to $346,660 thousand year-to-date 2024, partly due to a prior legal accrual in 2023[176]. - Research and development expenses were $20,770 thousand in Q2 2024, a decrease of $649 thousand or (3)% from Q2 2023[155]. - Research and development expenses increased by 6% to $44,302 thousand year-to-date 2024, representing 1.6% of net sales[178]. - The company is taking proactive actions to optimize its cost structure and strengthen financial flexibility, including suspending construction of certain projects[148]. - Capital project assets write-off amounted to $292,315 thousand in Q2 2024, reflecting the suspension of certain projects[154]. Investments and Capital Expenditures - Capital expenditures for the six-month period ended June 30, 2024, were $1.0 billion, with expectations to reach $1.7 billion to $1.8 billion in 2024, primarily for Energy Storage growth and capacity increases[195]. - The company plans to invest in a battery-grade lithium conversion plant in Meishan, targeting 50,000 metric tonnes of LCE per year, with first commercial sales achieved in Q2 2024[223]. - The company received a nearly $150 million grant from the U.S. Department of Energy to support the construction of a lithium concentrator facility in North Carolina, expected to produce approximately 420,000 tons of spodumene concentrate annually[224]. Debt and Financial Position - The non-current portion of long-term debt was $3.52 billion at June 30, 2024, compared to $3.54 billion at December 31, 2023[212]. - Long-term debt remained stable at approximately $2.25 billion as of June 30, 2024[238]. - Current liabilities decreased to $1.72 billion as of June 30, 2024, from $2.37 billion at the end of 2023[238]. - Current assets increased to $1.4 billion as of June 30, 2024, from $872.6 million as of December 31, 2023[250]. - The liability for uncertain tax positions increased to $226.3 million as of June 30, 2024, from $220.6 million at the end of 2023[216]. Other Financial Metrics - Gross loss profit for Q2 2024 was $(10,578) thousand, a decrease of $569,065 thousand or (102)% compared to Q2 2023[152]. - Other income, net decreased by $20,288 thousand or (38)% to $33,666 thousand in Q2 2024, impacted by losses related to equity securities[157]. - Other comprehensive loss, net of tax was $(40,134) thousand in Q2 2024, an increase of $35,525 thousand or 771% compared to Q2 2023, driven by unfavorable foreign currency translation[161]. - Other comprehensive loss for YTD 2024 was $(109,014) thousand, a change of $(151,722) thousand from a gain of $42,708 thousand in YTD 2023[184]. - Interest and financing expenses increased by $9,610 thousand or 38% to $(35,187) thousand in Q2 2024 due to lower capitalized interest and increased amortization of debt discounts[156]. - The company realized a loss of $33.7 million from the sale of equity securities of a public company for proceeds of approximately $81.5 million in the six months ended June 30, 2024[196].