Company results: Net sales boost Abemarle’s Q1 performance

By Martim Facada
Published: Friday, 09 June 2017

Sales grow 10%; All segments on the up; Paid off large chunk of debt

Albemarle Corp. reported a decrease in their net earnings year-on-year to $51.2m in Q1 2017 from $228.19m in Q1 2016, taking the share price down to $0.45 per share from $2.02 previously.

The sharp decrease in the quarter was related to the repayment of approximately $751.21m in long term debt in the period, against a much smaller payment of $331.60m in Q1 2016. 

Albemarle Q1 results at a glance: 
Source: Albemarle Corp

The initiation of a share repurchase programme worth $250m, retiring 1.9m shares during the quarter against none last year, alongside a loss of income from discontinued operations in the period were pointed out as other major factors behind the company’s latest performance. 

Albemarle explained that these factors were partially offset by an increase in net sales in all segments. 

During Q1, adjusted EBITDA rose by 10% compared to Q1 2016 to $211.376m from $192.03m; adjusted net income from continuing operations rose to $119m and net sales increase by 10% to $722.1m. 

Albemarle’s CEO, Luke Kissam, said: "Both revenue and adjusted EBITDA grew by double digits, 15% and 14% respectively, compared to first quarter 2016. Our lithium business lead that growth, with an adjusted EBITDA increase of 56%."

This article from the June issue of Industrial Minerals magazine was first  published online on 4 May 2017.