Albemarle(ALB) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter net sales were $1.2 billion, a decline of 47.7% year-over-year, primarily due to lower pricing and volumes in Energy Storage[4] - Full year net sales totaled $5.4 billion, with Energy Storage sales volumes increasing by 26%; however, the company reported a net loss of $1.2 billion for the year[4] - Net sales for Q4 2024 were $1,231.7 million, a decrease from $2,356.2 million in Q4 2023, representing a decline of 47.8% year-over-year[30] - Total net sales for the year ended December 31, 2024, were $5,377,526, a decrease from $9,617,203 in 2023, representing a decline of approximately 44%[34] - Energy Storage segment net sales for the year ended December 31, 2024, were $7,078,998, compared to $3,015,121 in 2023, reflecting an increase of approximately 134%[34] - Specialties segment net sales decreased to $1,325,983 in 2024 from $1,482,425 in 2023, a decline of about 11%[34] - Ketjen segment net sales slightly decreased to $1,036,422 in 2024 from $1,055,780 in 2023, a decrease of approximately 2%[34] Profitability and Loss - Adjusted EBITDA for the fourth quarter was $251 million, reflecting year-over-year increases across all business segments, with Energy Storage up $290 million[4] - Adjusted EBITDA for the year ended December 31, 2024, was $1,139,778, down from $3,545,988 in 2023, indicating a decrease of about 68%[34] - Gross profit for Q4 2024 was $138.2 million, compared to a loss of $704.1 million in Q4 2023, indicating a significant recovery[30] - The company reported a net income attributable to Albemarle Corporation of $75.3 million for Q4 2024, a recovery from a loss of $617.7 million in Q4 2023[30] - Basic earnings per share attributable to common shareholders for Q4 2024 was $0.29, compared to a loss of $5.26 in Q4 2023[30] - Adjusted net loss attributable to common shareholders for the three months ended December 31, 2024, was $(127,899) thousand, compared to $(609,525) thousand in 2023[39] Cash Flow and Liquidity - As of December 31, 2024, Albemarle had estimated liquidity of approximately $2.8 billion, including $1.2 billion in cash and equivalents[24] - Cash and cash equivalents increased to $1.2 billion in 2024, up from $889.9 million in 2023, showing a growth of 34.2%[31] - Net cash provided by operating activities for the year was $702,068, down from $1,325,321 in 2023, a decline of about 47%[33] - Net cash used in investing activities was $1,574,438 for the year, compared to $2,781,160 in 2023, a decrease of approximately 43%[33] - Cash and cash equivalents at the end of the period were $889,900, compared to $1,192,230 in 2023, a decrease of about 25%[33] Expenses and Liabilities - Research and development expenses for the year ended December 31, 2024, were $86.7 million, slightly up from $85.7 million in 2023[30] - Total current liabilities decreased to $1.97 billion in 2024, down from $3.56 billion in 2023, a reduction of 44.5%[31] - The company’s long-term debt decreased to $3.12 billion in 2024 from $3.54 billion in 2023, a decline of 11.9%[31] - Selling, general and administrative expenses included $2.3 million for facility closure expenses in Germany and $1.9 million for environmental reserves[49] Taxation - The effective income tax rate for Q4 2024 was 13.8%, compared to (12.9)% in the same period of 2023, influenced by changes in geographic income mix[10] - For the year ended December 31, 2024, the company reported a net loss before income taxes of $1,763.8 million, with an effective income tax rate of (4.9)%[49] - Discrete net tax benefits for the year ended December 31, 2024 amounted to $117.5 million, or $1.00 per share[47] - The company experienced a significant increase in net tax benefits from $1.3 million in 2023 to $111.4 million in 2024[47] Future Outlook - The company expects 2025 capital expenditures to be reduced by over 50% to a range of $700 million to $800 million, down from $1.7 billion in 2024[21] - The company anticipates Energy Storage volumes to increase by 0% to 10% in 2025 compared to 2024, depending on market conditions[14] - The company anticipates continued fluctuations in lithium market prices and plans to adjust capital expenditures accordingly for future projects[29]