Ferroglobe PLC (NASDAQ: GSM) (“Ferroglobe”, the “Company”, or the
“Parent”), a leading producer globally of silicon metal,
silicon-based and manganese-based specialty alloys, today announced
results for the third quarter 2021.
Q3 2021 Earnings Highlights
In the third quarter of 2021, Ferroglobe reported
net sales of $429.2 million, up 2.5% from the prior quarter and up
63.4% from the year-ago period.
Ferroglobe reported a net loss of ($97.6)
million, or ($0.54) per share on a fully diluted basis in the third
quarter 2021. The net loss includes a $90.8 million one-time charge
relating to debt extinguishment. On an adjusted basis, the Q3 2021
net loss was ($64.2) million, or ($0.36) per share on a fully
diluted basis.
At the completion of the comprehensive
refinancing, we recognized a charge of $90.8 million. This relates
to all the advisory fees and expenses, including equity granted to
the noteholders and underwriters, incurred during the refinancing
of the prior 9.375% Senior Notes due 2022, which were deemed to be
extinguished at closing and replaced with new 9.375% million Senior
Notes due 2025. This $90.8 million charge is deemed to be one-time,
but adversely impacted our P&L during the quarter, resulting in
a net loss of $97.6
million. The
Company´s reported Q3 EBITDA of $35.2 million, is up 10.3% from
$31.9 million in the prior quarter. On an adjusted basis, Q3 2021
EBITDA was $37.6 million, up 10.3% from the prior quarter adjusted
EBITDA of $34.1 million. The Company reported an adjusted EBITDA
margin of 8.8% for Q3 2021, up from 8.1% for Q2 2021.
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Quarter Ended |
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Quarter Ended |
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Quarter Ended |
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Nine Months Ended |
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Nine Months Ended |
$,000
(unaudited) |
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September 30, 2021 |
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June 30, 2021 |
|
September 30, 2020 |
|
September 30, 2021 |
|
September 30, 2020 |
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Sales |
|
$ |
429,210 |
|
|
$ |
418,538 |
|
|
$ |
262,673 |
|
|
$ |
1,209,137 |
|
|
$ |
823,899 |
|
Net profit (loss) |
|
$ |
(97,619 |
) |
|
$ |
730 |
|
|
$ |
(46,834 |
) |
|
$ |
(165,405 |
) |
|
$ |
(109,927 |
) |
Diluted EPS |
|
$ |
(0.54 |
) |
|
$ |
0.01 |
|
|
$ |
(0.28 |
) |
|
$ |
(0.94 |
) |
|
$ |
(0.63 |
) |
Adjusted net income (loss)
attributable to the parent |
|
$ |
(64,214 |
) |
|
$ |
2,964 |
|
|
$ |
(9,331 |
) |
|
$ |
(79,424 |
) |
|
$ |
(58,109 |
) |
Adjusted diluted EPS |
|
$ |
(0.36 |
) |
|
$ |
0.02 |
|
|
$ |
(0.14 |
) |
|
$ |
(0.45 |
) |
|
$ |
(0.34 |
) |
Adjusted EBITDA |
|
$ |
37,592 |
|
|
$ |
34,088 |
|
|
$ |
22,231 |
|
|
$ |
93,747 |
|
|
$ |
27,027 |
|
Adjusted EBITDA margin |
|
|
8.8 |
% |
|
|
8.1 |
% |
|
|
8.5 |
% |
|
|
7.8 |
% |
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|
3.3 |
% |
Ferroglobe’s Chief Executive Officer, Marco Levi
Ph.D, commented, “During the third quarter, we experienced stronger
pricing across each of our segments as the market dynamics
reflected very strong demand. Somewhat offsetting the strong
pricing environment was higher costs, primarily energy as well as
lower volumes in our silicon metal and silicon-based alloys
segments driven by operational issues at certain facilities and
delayed deliveries requested by some customers given the seasonal
slowdown during the summer.” Dr. Levi added, “The end markets for
each of our segments remain robust into the fourth quarter,
resulting in strong momentum as we negotiate contracts for 2022. We
expect to end the year on a favorable note, and are taking measures
to ensure a step-change in our financial performance next
year.” "Throughout
the third quarter, we continued to execute on our strategic plan,
finalizing the refinancing and focusing on improving Ferroglobe’s
efficiencies company-wide. We have made significant progress, but
there is more work to be done as we focus on growing our business
and increasing our profitability,” concluded Dr. Levi.
Cash Flow and Balance Sheet
Cash used from operations during Q3 2021
was $34.7 million, primarily driven by investments in working
capital given the ramp-up in demand we are expecting.
Working capital increased by $61.6 million, from
$334.3 million as of June 30, 2021 to $395.9 million as of
September 30, 2021. The increase in working capital was driven by a
$45 million increase in inventory and a $22 million increase in
accounts receivable as a result of increased activity.
Net debt was $404 million as of September 30,
2021, up from $358 million as of June 30, 2021. This is primarily
attributable to the issuance of the second tranche of the Super
Senior notes amounting $20 million of an aggregate $60 million on
July 29, 2021.
COVID-19COVID-19 has been and
continues to be a complex and evolving situation, with governments,
public institutions and other organizations imposing or
recommending, and businesses and individuals implementing, at
various times and to varying degrees, restrictions on various
activities or other actions to combat its spread, such as
restrictions and bans on travel or transportation; limitations on
the size of in-person gatherings, restrictions on freight
transportations, closures of, or occupancy or other operating
limitations on work facilities, and quarantines and lock-downs.
As a result of this pandemic and the strict
confinement and other public health measures taken around the
world, the demand for our products in the second and third quarters
of 2020 was reduced significantly compared with the first and
fourth quarters of the year. During the fourth quarter of 2020,
demand level for our products increased to levels similar to those
prior to the outbreak. In first, second and third quarter of 2021,
demand for our products has increased even further than in the
fourth quarter of 2020. However, COVID-19 has negatively impacted,
and will in the future negatively impact to an extent we are unable
to predict, our revenues.
Subsequent events
On October 6, 2021, the Company has entered into
an equity distribution agreement (the “Equity Distribution
Agreement”) with B. Riley Securities, Inc. and Cantor Fitzgerald
& Co. relating to an at-the market offering of the ordinary
shares, par value $0.01 per share, of Ferroglobe PLC, under which
the Company may offer and sell ordinary shares having an aggregate
offering price of up to $100,000,000 from time to time through B.
Riley Securities, Inc. and Cantor Fitzgerald & Co. as our sales
agents. The program expires upon expiry of the Form F-3 on June 15,
2024.To date, the Company has sold 186,053 ordinary shares with a
net proceeds of $1.4 million.
Beatriz García-Cos, Ferroglobe’s Chief Financial
Officer, commented, “Ferroglobe is at an interesting inflection
point where we see attractive opportunities to position the
business for growth going into 2022, on the heels of a strong
operating environment. At the same time a number of headwinds,
primarily energy prices in Spain and some inflationary pressures in
key inputs, is consuming greater than expected cash. As such, this
program offers a flexible way to raise capital if/when needed to
pursue growth opportunities, but with no obligation to use the
program.”
On November 15, 2021 Ferroglobe reached an
agreement with the French Government relating to its restructuring
process. Under the agreement, Ferroglobe has the support from the
government and projects to strengthen its competitiveness across
the five manufacturing sites that would continue to operate in
France. Specifically, Les Clavaux facility would remain operational
with a clear plan to modernize the facility and improve its cost
position. This facility would also benefit from a new commercial
agreement with a long-standing customer. As planned in the initial
project proposed in March 2021, the Château-Feuillet facility would
stop production and the calcium silicon production capability would
be transferred to Les Clavaux.
Marco Levi, Ferroglobe’s Chief Executive Officer
commented, "I would like to acknowledge and thank all the efforts
made by the various stakeholders, which have helped reduce the
potential social impact in France. This includes the contributions
and diligent work of the French government and in particular the
Minister of Industry, the Minister of Labor and their respective
teams at the national and local levels, the Interministerial
Delegate for Restructuring, the Prefects and elected officials, and
all Ferroglobe France (FerroPem) employees and social partners. We
are collectively encouraged by this outcome and feel confident that
the new environment and developments through the process should
enable us to strengthen our competitiveness in France.”
Discussion of Third Quarter 2021 Results
The financial results presented for the third
quarter are unaudited.
Sales
Sales for Q3 2021 were $429.2 million, an
increase of 2.5% compared to $418.5 million in Q2 2021.
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Quarter Ended |
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Quarter Ended |
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Quarter Ended |
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Nine Months Ended |
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Nine Months Ended |
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September 30, 2021 |
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June 30, 2021 |
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Change |
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September 30, 2020 |
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Change |
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September 30, 2021 |
|
September 30, 2020 |
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Change |
Shipments in metric
tons: |
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Silicon Metal |
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61,713 |
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67,322 |
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(8.3 |
)% |
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51,215 |
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20.5 |
% |
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190,311 |
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152,420 |
|
24.9 |
% |
Silicon-based Alloys |
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55,863 |
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65,222 |
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(14.3 |
)% |
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42,449 |
|
31.6 |
% |
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182,688 |
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142,860 |
|
27.9 |
% |
Manganese-based Alloys |
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76,454 |
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68,323 |
|
11.9 |
% |
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|
53,980 |
|
41.6 |
% |
|
|
217,386 |
|
|
182,995 |
|
18.8 |
% |
Total shipments* |
|
|
194,030 |
|
|
200,867 |
|
(3.4 |
)% |
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147,644 |
|
31.4 |
% |
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590,385 |
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|
478,275 |
|
23.4 |
% |
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Average selling price
($/MT): |
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|
Silicon Metal |
|
$ |
2,467 |
|
$ |
2,347 |
|
5.1 |
% |
|
$ |
2,248 |
|
9.7 |
% |
|
$ |
2,366 |
|
$ |
2,225 |
|
6.3 |
% |
Silicon-based Alloys |
|
$ |
1,992 |
|
$ |
1,830 |
|
8.9 |
% |
|
$ |
1,534 |
|
29.9 |
% |
|
$ |
1,824 |
|
$ |
1,510 |
|
20.8 |
% |
Manganese-based Alloys |
|
$ |
1,574 |
|
$ |
1,414 |
|
11.3 |
% |
|
$ |
1,009 |
|
56.0 |
% |
|
$ |
1,390 |
|
$ |
1,019 |
|
36.4 |
% |
Total* |
|
$ |
1,978 |
|
$ |
1,862 |
|
6.3 |
% |
|
$ |
1,590 |
|
24.4 |
% |
|
$ |
1,839 |
|
$ |
1,550 |
|
18.6 |
% |
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Average selling price
($/lb.): |
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Silicon Metal |
|
$ |
1.12 |
|
$ |
1.06 |
|
5.1 |
% |
|
$ |
1.02 |
|
9.7 |
% |
|
$ |
1.07 |
|
$ |
1.01 |
|
6.3 |
% |
Silicon-based Alloys |
|
$ |
0.90 |
|
$ |
0.83 |
|
8.9 |
% |
|
$ |
0.70 |
|
29.9 |
% |
|
$ |
0.83 |
|
$ |
0.68 |
|
20.8 |
% |
Manganese-based Alloys |
|
$ |
0.71 |
|
$ |
0.64 |
|
11.3 |
% |
|
$ |
0.46 |
|
56.0 |
% |
|
$ |
0.63 |
|
$ |
0.46 |
|
36.4 |
% |
Total* |
|
$ |
0.90 |
|
$ |
0.84 |
|
6.3 |
% |
|
$ |
0.72 |
|
24.4 |
% |
|
$ |
0.83 |
|
$ |
0.70 |
|
18.6 |
% |
_________________* Excludes by-products and
other
Sales Prices & Volumes By
Product
During Q3 2021, the average selling prices
across our product portfolio increased by 6.3% versus Q2 2021.
During the quarter, the average selling prices of silicon metal
increased 5.1%, silicon-based alloys prices increased 8.9%, and
manganese-based alloys prices increased 11.3%.
Overall sales volumes in Q3 2021 decreased by
3.4% versus the prior quarter. Silicon metal volume in the third
quarter was 61,713 tons, down 8.3% from the prior quarter. The
decline in Q3 was a result of curtailments at Sabon (Spain) and
Alloy, West Virginia (United States). Silicon-based alloys
shipments during the third quarter were 55,863 tons, down 14.3%
from the prior quarter, driven primarily by a combination of
operational disturbances, as well as some seasonality in demand.
Manganese-based alloys shipments of 76,787 were up 11.9% in Q3
versus Q2 2021. The strong volume trends in manganese-based alloys
were a result of some shipment delays in the second quarter which
show up in the third quarter figures.
Cost of Sales
Cost of sales was $295.3 million in Q3 2021, an
increase from $267.9 million in the prior quarter. Cost of sales as
a percentage of sales increased to 68.8% in Q3 2021 versus 64.0%
for Q2 2021. The increase in the percentage of cost of sales in Q3
was mainly driven by higher energy cost in Spain.
Other Operating Expenses
Other operating expenses in Q3 2021 were $79.8
million, down from $93.2 million in Q3 2021. The decrease in other
operating expenses was mainly due to the higher impact of the
European free CO2 rights in Q2
2021. Net
Loss Attributable to the Parent
In Q3 2021, net loss attributable to the Parent
was ($96.6) million, or ($0.54) per diluted share, compared to a
net profit attributable to the Parent of $1.9 million , or $0.01
per diluted share in Q2 2021. The net loss in Q3 included a
non-cash charge of ($90.8) million related to the debt
extinguishment of the senior notes as part of the refinancing.
Adjusted EBITDA
In Q3 2021, adjusted EBITDA was $37.6 million,
or 8.8% of sales, up 10.3% compared to adjusted EBITDA of $34.1
million, or 8.1% of sales in Q2 2021. The increase in the Q3 2021
Adjusted EBITDA is primarily driven by the improvement in average
realized prices across the product portfolio.
Net finance expenses
Net finance expense amounted to $103.4 million
in Q3 2021, an increase from $11.2 million in the prior quarter.
The increase is due to the accounting charge relating to Senior
Notes refinancing, amounting $90.8 million.
For accounting purposes the refinancing of the
Senior Notes have been considered a debt extinguishment. As a
consequence;
(i) |
The accounting
rules do not allow to capitalize the fees incurred in the exchange
of the notes, amounting $31.7 million |
(ii) |
Similarly to the transaction fees, the shares paid to
bondholders and underwriters cannot be capitalized and has to be
considered as a one-off expense, amounting $51.6 million |
(iii) |
In the case of an extinguishment any outstanding upfront fees
that were capitalized at the issuance of the original notes needs
to be recycled in to P&L, this amounted $1 million.
Additionally, the new notes were accounted at fair value amounting
$6.5 million as the debt at the exchange date was trading with a
premium. After the exchange the Senior notes will be accounted
under the amortized cost method. |
The transaction fees incurred in the issuance of
the Super Senior has been capitalized as required by the accounting
rules.
Conference Call
Ferroglobe management will review the third
quarter during a conference call at 08:30 a.m. U.S Eastern
Standard Time on November 17, 2021.
The dial-in number for participants in the
United States is + 1 877-870-9135 (conference ID: 3867903).
International callers should dial + 44 (0)-2071-928338 (conference
ID: 3867903). Please dial in at least five minutes prior to the
call to register. The call may also be accessed via an audio
webcast available
at https://edge.media-server.com/mmc/p/8ep3x3fm
About Ferroglobe
Ferroglobe is one of the world’s leading
suppliers of silicon metal, silicon-based and manganese-based
specialty alloys and ferroalloys, serving a customer base across
the globe in dynamic and fast-growing end markets, such as solar,
automotive, consumer products, construction and energy. The Company
is based in London. For more information,
visit http://investor.ferroglobe.com.
Forward-Looking Statements
This release contains “forward-looking
statements” within the meaning of U.S. securities laws.
Forward-looking statements are not historical facts but are based
on certain assumptions of management and describe the Company’s
future plans, strategies and expectations. Forward-looking
statements often use forward-looking terminology, including words
such as “anticipate”, “believe”, “could”, “estimate”, “expect”,
“forecast”, “guidance”, “intends”, “likely”, “may”, “plan”,
“potential”, “predicts”, “seek”, “target”, “will” and words of
similar meaning or the negative thereof.
Forward-looking statements contained in this
press release are based on information currently available to the
Company and assumptions that management believe to be reasonable,
but are inherently uncertain. As a result, Ferroglobe’s actual
results, performance or achievements may differ materially from
those expressed or implied by these forward-looking statements,
which are not guarantees of future performance and involve known
and unknown risks, uncertainties and other factors that are, in
some cases, beyond the Company’s control.
Forward-looking financial information and other
metrics presented herein represent the Company’s goals and are not
intended as guidance or projections for the periods referenced
herein or any future periods.
All information in this press release is as of
the date of its release. Ferroglobe does not undertake
any obligation to update publicly any of the forward-looking
statements contained herein to reflect new information, events or
circumstances arising after the date of this press release. You
should not place undue reliance on any forward-looking statements,
which are made only as of the date of this press release.
Non-IFRS Measures
Adjusted EBITDA, adjusted EBITDA margin,
adjusted net profit, adjusted profit per share, working capital and
net debt, are non-IFRS financial metrics that, we believe, are
pertinent measures of Ferroglobe’s success. Ferroglobe has included
these financial metrics to provide supplemental measures of its
performance. The Company believes these metrics are important
because they eliminate items that have less bearing on the
Company’s current and future operating performance and highlight
trends in its core business that may not otherwise be apparent when
relying solely on IFRS financial measures.
INVESTOR CONTACT:
Gaurav MehtaExecutive Vice President – Investor
Relations Email: investor.relations@ferroglobe.com
MEDIA CONTACT:
Cristina Feliu RoigExecutive Director – Communications &
Public
AffairsEmail: corporate.comms@ferroglobe.com
|
Ferroglobe PLC and SubsidiariesUnaudited
Condensed Consolidated Income Statement(in
thousands of U.S. dollars, except per share amounts) |
|
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Nine Months Ended |
|
Nine Months Ended |
|
|
September 30, 2021 |
|
June 30, 2021 |
|
September 30, 2020 |
|
September 30, 2021 |
|
September 30, 2020 |
Sales |
|
$ |
429,210 |
|
|
$ |
418,538 |
|
|
$ |
262,673 |
|
|
$ |
1,209,137 |
|
|
$ |
823,899 |
|
Cost
of sales |
|
|
(295,273 |
) |
|
|
(267,939 |
) |
|
|
(166,231 |
) |
|
|
(813,377 |
) |
|
|
(562,882 |
) |
Other
operating income |
|
|
31,447 |
|
|
|
37,105 |
|
|
|
7,598 |
|
|
|
70,466 |
|
|
|
25,526 |
|
Staff
costs |
|
|
(50,386 |
) |
|
|
(63,197 |
) |
|
|
(56,329 |
) |
|
|
(208,849 |
) |
|
|
(160,338 |
) |
Other
operating expense |
|
|
(79,785 |
) |
|
|
(93,171 |
) |
|
|
(26,896 |
) |
|
|
(209,793 |
) |
|
|
(102,915 |
) |
Depreciation and amortization charges, operating allowances and
write-downs |
|
|
(23,971 |
) |
|
|
(23,523 |
) |
|
|
(26,524 |
) |
|
|
(72,779 |
) |
|
|
(82,651 |
) |
Impairment losses |
|
|
(363 |
) |
|
|
— |
|
|
|
(34,269 |
) |
|
|
(363 |
) |
|
|
(34,269 |
) |
Other
(loss) gain |
|
|
381 |
|
|
|
608 |
|
|
|
1,212 |
|
|
|
1,056 |
|
|
|
625 |
|
Operating profit (loss) |
|
|
11,260 |
|
|
|
8,421 |
|
|
|
(38,766 |
) |
|
|
(24,502 |
) |
|
|
(93,005 |
) |
Net
finance expense |
|
|
(103,379 |
) |
|
|
(11,178 |
) |
|
|
(13,985 |
) |
|
|
(130,420 |
) |
|
|
(47,162 |
) |
Financial derivatives gain |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,168 |
|
Exchange differences |
|
|
(6,180 |
) |
|
|
3,237 |
|
|
|
13,158 |
|
|
|
(12,257 |
) |
|
|
18,226 |
|
Profit (loss) before tax |
|
|
(98,299 |
) |
|
|
480 |
|
|
|
(39,594 |
) |
|
|
(167,179 |
) |
|
|
(118,773 |
) |
Income tax benefit |
|
|
680 |
|
|
|
250 |
|
|
|
(1,841 |
) |
|
|
1,774 |
|
|
|
14,245 |
|
(Loss) profit for the period from continuing
operations |
|
|
(97,619 |
) |
|
|
730 |
|
|
|
(41,435 |
) |
|
|
(165,405 |
) |
|
|
(104,528 |
) |
Profit for the period from discontinued operations |
|
|
— |
|
|
|
— |
|
|
|
(5,399 |
) |
|
|
— |
|
|
|
(5,399 |
) |
Profit (loss) for the period |
|
|
(97,619 |
) |
|
|
730 |
|
|
|
(46,834 |
) |
|
|
(165,405 |
) |
|
|
(109,927 |
) |
Profit attributable to non-controlling interest |
|
|
1,023 |
|
|
|
1,180 |
|
|
|
(450 |
) |
|
|
3,338 |
|
|
|
2,638 |
|
Profit (loss) attributable to the parent |
|
$ |
(96,596 |
) |
|
$ |
1,910 |
|
|
$ |
(47,284 |
) |
|
$ |
(162,067 |
) |
|
$ |
(107,289 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
$ |
35,231 |
|
|
$ |
31,944 |
|
|
$ |
(12,243 |
) |
|
$ |
48,277 |
|
|
$ |
(10,354 |
) |
Adjusted EBITDA |
|
$ |
37,592 |
|
|
$ |
34,088 |
|
|
$ |
22,231 |
|
|
$ |
93,747 |
|
|
$ |
27,027 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
179,849 |
|
|
|
169,298 |
|
|
|
169,261 |
|
|
|
172,852 |
|
|
|
169,261 |
|
Diluted |
|
|
179,849 |
|
|
|
169,298 |
|
|
|
169,261 |
|
|
|
172,852 |
|
|
|
169,261 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) per
ordinary share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.54 |
) |
|
$ |
0.01 |
|
|
$ |
(0.28 |
) |
|
$ |
(0.94 |
) |
|
$ |
(0.63 |
) |
Diluted |
|
$ |
(0.54 |
) |
|
$ |
0.01 |
|
|
$ |
(0.28 |
) |
|
$ |
(0.94 |
) |
|
$ |
(0.63 |
) |
Ferroglobe PLC and SubsidiariesUnaudited
Condensed Consolidated Statement of Financial
Position(in thousands of U.S.
dollars) |
|
|
|
September 30, |
|
June 30, |
|
December 31 |
|
|
2021 |
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
|
|
ASSETS |
Non-current assets |
|
|
|
|
|
|
|
|
|
Goodwill |
|
$ |
29,702 |
|
$ |
29,702 |
|
$ |
29,702 |
Other intangible assets |
|
|
89,698 |
|
|
87,556 |
|
|
20,756 |
Property, plant and equipment |
|
|
567,876 |
|
|
587,602 |
|
|
620,034 |
Other non-current financial assets |
|
|
5,198 |
|
|
5,329 |
|
|
5,057 |
Deferred tax assets |
|
|
150 |
|
|
62 |
|
|
— |
Non-current receivables from related parties |
|
|
2,316 |
|
|
2,377 |
|
|
2,454 |
Other non-current assets |
|
|
17,916 |
|
|
13,960 |
|
|
11,904 |
Total non-current
assets |
|
|
712,856 |
|
|
726,588 |
|
|
689,907 |
Current
assets |
|
|
|
|
|
|
|
|
|
Inventories |
|
|
284,488 |
|
|
239,750 |
|
|
246,549 |
Trade and other receivables |
|
|
305,453 |
|
|
283,990 |
|
|
242,262 |
Current receivables from related parties |
|
|
3,025 |
|
|
3,105 |
|
|
3,076 |
Current income tax assets |
|
|
8,195 |
|
|
8,826 |
|
|
12,072 |
Other current financial assets |
|
|
903 |
|
|
1,003 |
|
|
1,008 |
Other current assets |
|
|
10,352 |
|
|
57,219 |
|
|
20,714 |
Current restricted cash and cash equivalents |
|
|
5,996 |
|
|
6,149 |
|
|
28,843 |
Cash and cash equivalents |
|
|
89,047 |
|
|
99,940 |
|
|
102,714 |
Total current
assets |
|
|
707,459 |
|
|
699,982 |
|
|
657,238 |
Total
assets |
|
$ |
1,420,315 |
|
$ |
1,426,570 |
|
$ |
1,347,145 |
|
|
|
|
|
|
|
|
|
|
EQUITY AND LIABILITIES |
Equity |
|
$ |
281,910 |
|
$ |
299,469 |
|
$ |
365,719 |
Non-current
liabilities |
|
|
|
|
|
|
|
|
|
Deferred income |
|
|
16,275 |
|
|
37,570 |
|
|
620 |
Provisions |
|
|
98,607 |
|
|
107,501 |
|
|
108,487 |
Bank borrowings |
|
|
3,998 |
|
|
4,061 |
|
|
5,277 |
Lease liabilities |
|
|
11,199 |
|
|
12,995 |
|
|
13,994 |
Debt instruments |
|
|
405,171 |
|
|
37,600 |
|
|
346,620 |
Other financial liabilities |
|
|
37,630 |
|
|
37,608 |
|
|
29,094 |
Other non-current liabilities |
|
|
13,035 |
|
|
16,955 |
|
|
16,767 |
Deferred tax liabilities |
|
|
22,868 |
|
|
23,956 |
|
|
27,781 |
Total non-current
liabilities |
|
|
608,783 |
|
|
278,246 |
|
|
548,640 |
Current
liabilities |
|
|
|
|
|
|
|
|
|
Provisions |
|
|
109,552 |
|
|
102,269 |
|
|
55,296 |
Bank borrowings |
|
|
86,262 |
|
|
85,825 |
|
|
102,330 |
Lease liabilities |
|
|
9,255 |
|
|
8,709 |
|
|
8,542 |
Debt instruments |
|
|
25,822 |
|
|
359,318 |
|
|
10,888 |
Other financial liabilities |
|
|
24,155 |
|
|
23,732 |
|
|
34,802 |
Payables to related parties |
|
|
9,079 |
|
|
6,131 |
|
|
3,196 |
Trade and other payables |
|
|
194,074 |
|
|
189,449 |
|
|
149,201 |
Current income tax liabilities |
|
|
1,464 |
|
|
513 |
|
|
2,538 |
Other current liabilities |
|
|
69,959 |
|
|
72,909 |
|
|
65,993 |
Total current
liabilities |
|
|
529,622 |
|
|
848,855 |
|
|
432,786 |
Total equity and
liabilities |
|
$ |
1,420,315 |
|
$ |
1,426,570 |
|
$ |
1,347,145 |
Ferroglobe PLC and SubsidiariesUnaudited
Condensed Consolidated Statement of Cash Flows(in
thousands of U.S. dollars) |
|
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Nine Months Ended |
|
Nine Months Ended |
|
|
September 30, 2021 |
|
June 30, 2021 |
|
September 30, 2020 |
|
September 30, 2021 |
|
September 30, 2020 |
Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) for the period |
|
$ |
(97,619 |
) |
|
$ |
730 |
|
|
$ |
(46,834 |
) |
|
$ |
(165,405 |
) |
|
$ |
(109,927 |
) |
Adjustments to
reconcile net (loss) profit to net cash used by
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (benefit) expense |
|
|
(680 |
) |
|
|
(250 |
) |
|
|
1,841 |
|
|
|
(1,774 |
) |
|
|
(14,245 |
) |
Depreciation and amortization charges, operating allowances and
write-downs |
|
|
23,971 |
|
|
|
23,523 |
|
|
|
26,524 |
|
|
|
72,779 |
|
|
|
82,651 |
|
Net finance expense |
|
|
103,379 |
|
|
|
11,178 |
|
|
|
13,985 |
|
|
|
130,420 |
|
|
|
47,162 |
|
Financial derivatives loss (gain) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,168 |
) |
Exchange differences |
|
|
6,180 |
|
|
|
(3,237 |
) |
|
|
(13,158 |
) |
|
|
12,257 |
|
|
|
(18,226 |
) |
Impairment losses |
|
|
363 |
|
|
|
— |
|
|
|
34,269 |
|
|
|
363 |
|
|
|
34,269 |
|
Net loss (gain) due to changes in the value of asset |
|
|
(424 |
) |
|
|
(243 |
) |
|
|
— |
|
|
|
(688 |
) |
|
|
— |
|
Bargain purchase gain |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Gain on disposal of discontinued operation |
|
|
— |
|
|
|
— |
|
|
|
5,399 |
|
|
|
— |
|
|
|
5,399 |
|
Gain on disposal of non-current assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(351 |
) |
|
|
— |
|
Share-based compensation |
|
|
1,269 |
|
|
|
673 |
|
|
|
323 |
|
|
|
2,163 |
|
|
|
1,749 |
|
Other adjustments |
|
|
43 |
|
|
|
(366 |
) |
|
|
(8,774 |
) |
|
|
(17 |
) |
|
|
(8,188 |
) |
Changes in operating
assets and liabilities |
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
(Increase) decrease in inventories |
|
|
(51,835 |
) |
|
|
(8,770 |
) |
|
|
3,725 |
|
|
|
(49,159 |
) |
|
|
42,831 |
|
(Increase) decrease in trade receivables |
|
|
(27,683 |
) |
|
|
(8,625 |
) |
|
|
(4,731 |
) |
|
|
(78,000 |
) |
|
|
124,638 |
|
Increase (decrease) in trade payables |
|
|
9,138 |
|
|
|
16,184 |
|
|
|
(20,359 |
) |
|
|
51,474 |
|
|
|
(50,738 |
) |
Other |
|
|
(1,138 |
) |
|
|
(32,783 |
) |
|
|
31,411 |
|
|
|
3,764 |
|
|
|
3,526 |
|
Income taxes paid |
|
|
359 |
|
|
|
(1,178 |
) |
|
|
(633 |
) |
|
|
(876 |
) |
|
|
13,008 |
|
Interest paid |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net cash provided
(used) by operating activities |
|
|
(34,677 |
) |
|
|
(3,164 |
) |
|
|
22,988 |
|
|
|
(23,050 |
) |
|
|
150,741 |
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and finance income
received |
|
|
21 |
|
|
|
128 |
|
|
|
278 |
|
|
|
184 |
|
|
|
617 |
|
Payments due to
investments: |
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
Acquisition of subsidiary |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other intangible assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Property, plant and equipment |
|
|
(8,189 |
) |
|
|
(3,245 |
) |
|
|
(8,734 |
) |
|
|
(17,117 |
) |
|
|
(18,396 |
) |
Other |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Disposals: |
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
Disposal of subsidiaries |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other non-current assets |
|
|
— |
|
|
|
543 |
|
|
|
46 |
|
|
|
543 |
|
|
|
46 |
|
Other |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net cash (used)
provided by investing activities |
|
|
(8,168 |
) |
|
|
(2,574 |
) |
|
|
(8,410 |
) |
|
|
(16,390 |
) |
|
|
(17,733 |
) |
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Payment for debt and equity
issuance costs |
|
|
(26,064 |
) |
|
|
(11,093 |
) |
|
|
(608 |
) |
|
|
(43,755 |
) |
|
|
(2,463 |
) |
Proceeds from equity
issuance |
|
|
40,000 |
|
|
|
— |
|
|
|
— |
|
|
|
40,000 |
|
|
|
— |
|
Proceeds from debt
issuance |
|
|
20,000 |
|
|
|
40,000 |
|
|
|
|
|
|
60,000 |
|
|
|
|
Increase/(decrease) in
bank borrowings: |
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
Borrowings |
|
|
159,861 |
|
|
|
149,945 |
|
|
|
8,022 |
|
|
|
437,496 |
|
|
|
8,022 |
|
Payments |
|
|
(158,118 |
) |
|
|
(144,983 |
) |
|
|
(7,800 |
) |
|
|
(460,565 |
) |
|
|
(73,360 |
) |
Proceeds from stock option
exercises |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Amounts paid due to
leases |
|
|
(2,602 |
) |
|
|
(3,157 |
) |
|
|
(2,463 |
) |
|
|
(8,615 |
) |
|
|
(7,342 |
) |
Other amounts received/(paid)
due to financing activities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,608 |
|
Payments to acquire or redeem
own shares |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Interest paid |
|
|
(1,125 |
) |
|
|
(3,333 |
) |
|
|
(17,130 |
) |
|
|
(21,473 |
) |
|
|
(37,085 |
) |
Net cash (used)
provided by financing activities |
|
|
31,952 |
|
|
|
27,379 |
|
|
|
(19,979 |
) |
|
|
3,088 |
|
|
|
(108,620 |
) |
Total net cash flows
for the period |
|
|
(10,893 |
) |
|
|
21,641 |
|
|
|
(5,401 |
) |
|
|
(36,352 |
) |
|
|
24,388 |
|
Beginning balance of cash and cash equivalents |
|
|
106,089 |
|
|
|
84,367 |
|
|
|
153,242 |
|
|
|
131,557 |
|
|
|
123,175 |
|
Exchange differences on cash and cash equivalents in foreign
currencies |
|
|
(153 |
) |
|
|
81 |
|
|
|
(416 |
) |
|
|
(162 |
) |
|
|
(138 |
) |
Ending balance of cash
and cash equivalents |
|
$ |
95,043 |
|
|
$ |
106,089 |
|
|
$ |
147,425 |
|
|
$ |
95,043 |
|
|
$ |
147,425 |
|
Cash from continuing
operations |
|
|
89,047 |
|
|
|
99,940 |
|
|
|
118,874 |
|
|
|
89,047 |
|
|
|
118,874 |
|
Current/Non-current restricted
cash and cash equivalents |
|
|
5,996 |
|
|
|
6,149 |
|
|
|
28,551 |
|
|
|
5,996 |
|
|
|
28,551 |
|
Cash and restricted
cash in the statement of financial position |
|
$ |
95,043 |
|
|
$ |
106,089 |
|
|
$ |
147,425 |
|
|
$ |
95,043 |
|
|
$ |
147,425 |
|
Adjusted
EBITDA ($,000): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Nine Months Ended |
|
Nine Months Ended |
|
|
September 30, 2021 |
|
June 30, 2021 |
|
September 30, 2020 |
|
September 30, 2021 |
|
September 30, 2020 |
Profit (loss) attributable to the parent |
|
$ |
(96,596 |
) |
|
$ |
1,910 |
|
|
$ |
(47,284 |
) |
|
$ |
(162,067 |
) |
|
$ |
(107,289 |
) |
Profit (loss) for the period
from discontinued operations |
|
|
— |
|
|
|
— |
|
|
|
5,399 |
|
|
|
— |
|
|
|
5,399 |
|
Profit (loss) attributable to
non-controlling interest |
|
|
(1,023 |
) |
|
|
(1,180 |
) |
|
|
450 |
|
|
|
(3,338 |
) |
|
|
(2,638 |
) |
Income tax (benefit)
expense |
|
|
(680 |
) |
|
|
(250 |
) |
|
|
1,841 |
|
|
|
(1,774 |
) |
|
|
(14,245 |
) |
Net finance expense |
|
|
103,379 |
|
|
|
11,178 |
|
|
|
13,985 |
|
|
|
130,420 |
|
|
|
47,162 |
|
Financial derivatives loss
(gain) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,168 |
) |
Exchange differences |
|
|
6,180 |
|
|
|
(3,237 |
) |
|
|
(13,158 |
) |
|
|
12,257 |
|
|
|
(18,226 |
) |
Depreciation and amortization
charges, operating allowances and write-downs |
|
|
23,971 |
|
|
|
23,523 |
|
|
|
26,524 |
|
|
|
72,779 |
|
|
|
82,651 |
|
EBITDA |
|
|
35,231 |
|
|
|
31,944 |
|
|
|
(12,243 |
) |
|
|
48,277 |
|
|
|
(10,354 |
) |
Impairment |
|
|
363 |
|
|
|
— |
|
|
|
34,269 |
|
|
|
363 |
|
|
|
34,269 |
|
Restructuring and termination
costs |
|
|
1,313 |
|
|
|
2,144 |
|
|
|
— |
|
|
|
44,422 |
|
|
|
— |
|
Energy: France |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
70 |
|
Staff Costs: South
Africa |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
155 |
|
Other Idling Costs |
|
|
— |
|
|
|
— |
|
|
|
205 |
|
|
|
— |
|
|
|
2,887 |
|
Pension Plan buyout |
|
|
685 |
|
|
|
— |
|
|
|
— |
|
|
|
685 |
|
|
|
|
Adjusted
EBITDA |
|
$ |
37,592 |
|
|
$ |
34,088 |
|
|
$ |
22,231 |
|
|
$ |
93,747 |
|
|
$ |
27,027 |
|
Adjusted
profit attributable to Ferroglobe ($,000): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Nine Months Ended |
|
Nine Months Ended |
|
|
September 30, 2021 |
|
June 30, 2021 |
|
September 30, 2020 |
|
September 30, 2021 |
|
September 30, 2020 |
Profit (loss) attributable to the parent |
|
$ |
(96,596 |
) |
|
$ |
1,910 |
|
|
$ |
(47,284 |
) |
|
$ |
(162,067 |
) |
|
$ |
(107,289 |
) |
Tax rate adjustment |
|
|
30,776 |
|
|
|
(404 |
) |
|
|
14,511 |
|
|
|
51,723 |
|
|
|
23,761 |
|
Impairment |
|
|
247 |
|
|
|
— |
|
|
|
23,303 |
|
|
|
247 |
|
|
|
23,303 |
|
Restructuring and termination costs |
|
|
893 |
|
|
|
1,458 |
|
|
|
— |
|
|
|
30,207 |
|
|
|
— |
|
Energy: France |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
48 |
|
Energy: South Africa |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Staff Costs: South Africa |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
105 |
|
Other Idling Costs |
|
|
— |
|
|
|
— |
|
|
|
139 |
|
|
|
— |
|
|
|
1,963 |
|
Tolling agreement |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Bargain purchase gain |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Gain on sale of hydro plant assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Share-based compensation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Pension Plan buyout |
|
|
466 |
|
|
|
|
|
|
|
|
|
466 |
|
|
|
|
Adjusted profit (loss)
attributable to the parent |
|
$ |
(64,214 |
) |
|
$ |
2,964 |
|
|
$ |
(9,331 |
) |
|
$ |
(79,424 |
) |
|
$ |
(58,109 |
) |
Adjusted
diluted profit per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Nine Months Ended |
|
Nine Months Ended |
|
|
September 30, 2021 |
|
June 30, 2021 |
|
September 30, 2020 |
|
September 30, 2021 |
|
September 30, 2020 |
Diluted profit (loss) per ordinary share |
|
$ |
(0.54 |
) |
|
$ |
0.01 |
|
|
$ |
(0.28 |
) |
|
$ |
(0.94 |
) |
|
$ |
(0.63 |
) |
Tax rate adjustment |
|
|
0.18 |
|
|
|
(0.00 |
) |
|
|
(0.00 |
) |
|
|
0.31 |
|
|
|
0.14 |
|
Impairment |
|
|
0.00 |
|
|
|
— |
|
|
|
0.14 |
|
|
|
0.00 |
|
|
|
0.14 |
|
Restructuring and termination costs |
|
|
0.00 |
|
|
|
0.01 |
|
|
|
— |
|
|
|
0.18 |
|
|
|
— |
|
Energy: France |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.00 |
|
Staff Costs: South Africa |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.00 |
|
Other Idling Costs |
|
|
— |
|
|
|
— |
|
|
|
0.00 |
|
|
|
— |
|
|
|
0.01 |
|
Restructuring and termination costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Tolling agreement |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Bargain purchase gain |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Gain on sale of hydro plant assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Share-based compensation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Pension Plan buyout |
|
|
0.00 |
|
|
|
— |
|
|
|
— |
|
|
|
0.00 |
|
|
|
— |
|
Adjusted diluted
profit (loss) per ordinary share |
|
$ |
(0.36 |
) |
|
$ |
0.02 |
|
|
$ |
(0.14 |
) |
|
$ |
(0.45 |
) |
|
$ |
(0.34 |
) |
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