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 fourth quarter and the full year 2020.
Q4 2020 Earnings Highlights
In Q4 2020, Ferroglobe posted a net loss of
($84.1) million, or ($0.49) per share on a fully diluted basis. On
an adjusted basis, the Q4 2020 net loss was ($30.8) million, or
($0.47) per share on a fully diluted basis.
Q4 2020 reported EBITDA was ($0.6) million, up
from ($12.2) million in the prior quarter. On an adjusted basis, Q4
2020 EBITDA was $5.7 million, down from Q3 2020 adjusted EBITDA of
$22.2 million. The Company reported an adjusted EBITDA margin of
1.8% for Q4 2020, compared to an adjusted EBITDA margin of 8.5% for
Q3 2020.
Full Year 2020 Earnings
Highlights
For Full Year 2020, Ferroglobe posted a net loss
of $(194.1) million, or $(1.13) per share. On an adjusted basis,
Full Year 2020 net loss was $(92.6) million, or $(0.98) per
share.
For the Full Year 2020, reported EBITDA was
$(11.0) million, versus $(235.4) million in the prior year. Full
Year 2020 Adjusted EBITDA was $32.8 million, versus $(29.2) million
in the prior year. The Company reported an adjusted EBITDA margin
of 2.9% for Full Year 2020, compared to an adjusted EBITDA margin
of (1.8)% for Full Year 2019.
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Year Ended |
|
Year Ended |
($000,
unaudited |
|
December 31, 2020 |
|
September 30, 2020 |
|
December 31, 2019 |
|
December 31, 2020 |
|
December 31, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
320,535 |
|
|
$ |
262,673 |
|
|
$ |
376,607 |
|
|
$ |
1,144,434 |
|
|
$ |
1,615,222 |
|
Net (loss) profit |
|
$ |
(84,141 |
) |
|
$ |
(46,834 |
) |
|
$ |
(73,291 |
) |
|
$ |
(194,067 |
) |
|
$ |
(285,640 |
) |
Diluted EPS |
|
$ |
(0.49 |
) |
|
$ |
(0.28 |
) |
|
$ |
(0.43 |
) |
|
$ |
(1.13 |
) |
|
$ |
(1.66 |
) |
Adjusted net (loss) income
attributable to the parent |
|
$ |
(30,798 |
) |
|
$ |
(13,002 |
) |
|
$ |
(47,845 |
) |
|
$ |
(92,577 |
) |
|
$ |
(108,288 |
) |
Adjusted diluted EPS |
|
$ |
(0.47 |
) |
|
$ |
(0.16 |
) |
|
$ |
(0.28 |
) |
|
$ |
(0.98 |
) |
|
$ |
(0.65 |
) |
Adjusted EBITDA |
|
$ |
5,737 |
|
|
$ |
22,231 |
|
|
$ |
(30,391 |
) |
|
$ |
32,765 |
|
|
$ |
(29,239 |
) |
Adjusted EBITDA margin |
|
|
1.8 |
% |
|
|
8.5 |
% |
|
|
(8.1 |
)% |
|
|
2.9 |
% |
|
|
(1.8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marco Levi, Ferroglobe’s Chief Executive
Officer, commented, “Despite a challenging year, Ferroglobe
delivered stronger financial results in 2020, and continued to
generate positive EBITDA during the fourth quarter. Throughout the
year we progressed on addressing near-term priorities, while also
diligently developing a multi-year strategic plan aimed at turning
around the Company.” Dr. Levi added, “The collective efforts and
actions of our global employees helped us successfully navigage
2020 and positions the Company well to capitalize on a pivotal
2021. We certainly look forward to executing the turnaround plan
and start delivering value to all our stakeholders in the near
term.”
Cash Flow and Balance Sheet
Cash generated from operations during Q4 2020
was $3.5 million.
Working capital decreased by $15 million, from
$354 million as of September 30, 2020 to $339 million at December
31, 2020. The decrease is mainly driven by a reduction in
inventories, partially offset by strengthening of the Euro relative
to the US Dollar.
Gross debt was $473 million as of December 31,
2020, up from $442 million as of September 30, 2020, primarily as a
result of coupon payment interest accrued, and the impact of the
Tribunal Superior de Galicia decision.
Beatriz García-Cos, Ferroglobe’s Chief Financial
Officer, commented, “2020 tested our Company in many ways and
despite all the financial pressures, we successfully navigated a
turbulent year by making quick adjustments and driving cost savings
across the all areas of the organization.” Ms. García-Cos added,
“We have been exploring various financing options for some time
now, and are excited to work towards closing the proposed
financing. This financing would eliminate any risks of near-term
debt maturities, and the new capital contribution would provide
adequate support to fund our strategic plan.”
COVID-19
Since January 2020, the COVID-19 pandemic has
spread to various jurisdictions where the Company does business.
The Company has been monitoring the evolving situation, and
consequent emerging risk. Among other steps, the Company has
implemented a coronavirus crisis management team, which has been
meeting regularly to ensure the Company and its subsidiaries take
appropriate action to protect all employees and ensure business
continuity.
During the fourth quarter demand for our
products was adversely impacted by COVID-19 It is difficult to
forecast all the impacts of the COVID-19 pandemic, and such impacts
might have a material adverse effect on our business, results of
operations and financial condition. The Company is continuously
evaluating how evolving customer demand and sales price evolution
stand to affect the Company’s business and results in the next
twelve months.
In connection with the preparation of our
consolidated financial statements, we conducted an evaluation as to
whether there were conditions and events, considered in the
aggregate, which raise substantial doubt as to the Company’s
ability to continue as a going concern in the one year period after
the date of the issuance of these interim financial statements. For
this interim financial statement, the evaluation was updated. Given
the speed and frequency of continuously evolving developments with
respect to this pandemic and the uncertainties this may bring for
the Company and the demand for its products, it is difficult to
forecast the level of trading activity and hence cash flow in the
next twelve months. Developing a reliable estimate of the potential
impact on the results of operations and cash flow at this time is
difficult as markets and industries react to the pandemic and the
measures implemented in response to it, but our downside scenario
analysis supports an expectation that the Company will have cash
headroom to continue to operate throughout the next twelve
months.
Additionally, the indenture governing the senior
unsecured notes includes provisions which, in the event of a change
of control, would require the Company to offer to redeem the
outstanding senior unsecured notes at a cash purchase price equal
to 101% of the principal amount of the senior unsecured notes, plus
any accrued and unpaid interest. Based on the provisions cited
above, a change of control as defined in the indenture is unlikely
to occur, but the matter it is not within the Company’s control. If
a change of control were to occur, the Company may not have
sufficient financial resources available to satisfy all of its
obligations. Management is pursuing additional sources of financing
to increase liquidity to fund operations.
Subsequent events
On February 1, 2021, the Company announced that it was in
discussions with certain holders of the 9.375% Senior Notes due
2022 and key financial partners.
Discussion of Fourth Quarter 2020 Results
The Company has concluded that there are
indications for potential impairment of goodwill, property, plant
and equipment and deferred tax assets. During the third quarter,
the Company registered an impairment relating to the Niagara Falls
facility as there are no plans to restart production. During the
fourth quarter the Company registered an impairment the spare parts
associated to the Niagara Falls facility. Additionally, during
the fourth quarter the Company impaired the deferred tax assets
related to tax losses in Spain, France and Argentina.The financial
results presented for the fourth quarter and fiscal year ended as
of December 31, 2020 are unaudited and may be subsequently
materially adjusted, including as a result of the final conclusions
on the impairment analysis, and the impact of the Tribunal Superior
de Galicia decision.
Sales
Sales for Q4 2020 were $320.5 million, an
increase of 22.0% compared to $262.7 million in Q3 2020. For Q4
2020, total shipments were up 29.3% and the average selling price
was down 3.5% compared with Q3 2020.
|
|
Quarter Ended |
|
Quarter Ended |
|
|
|
Quarter Ended |
|
|
|
Year Ended |
|
Year Ended |
|
|
|
|
December 31, 2020 |
|
September 30, 2020 |
|
Change |
|
December 31, 2019 |
|
Change |
|
December 31, 2020 |
|
December 31, 2019 |
|
Change |
Shipments in metric
tons: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silicon Metal |
|
|
54,912 |
|
|
51,215 |
|
7.2 |
% |
|
|
61,613 |
|
(10.9 |
)% |
|
|
207,332 |
|
|
239,692 |
|
(13.5 |
)% |
Silicon-based Alloys |
|
|
57,351 |
|
|
42,449 |
|
35.1 |
% |
|
|
64,485 |
|
(11.1 |
)% |
|
|
200,212 |
|
|
295,429 |
|
(32.2 |
)% |
Manganese-based Alloys |
|
|
78,611 |
|
|
53,980 |
|
45.6 |
% |
|
|
95,235 |
|
(17.5 |
)% |
|
|
261,605 |
|
|
392,456 |
|
(33.3 |
)% |
Total shipments* |
|
|
190,874 |
|
|
147,644 |
|
29.3 |
% |
|
|
221,333 |
|
(13.8 |
)% |
|
|
669,149 |
|
|
927,577 |
|
(27.9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average selling price
($/MT): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silicon Metal |
|
$ |
2,260 |
|
$ |
2,248 |
|
0.5 |
% |
|
$ |
2,175 |
|
3.9 |
% |
|
$ |
2,234 |
|
$ |
2,252 |
|
(0.8 |
)% |
Silicon-based Alloys |
|
$ |
1,528 |
|
$ |
1,534 |
|
(0.4 |
)% |
|
$ |
1,424 |
|
7.3 |
% |
|
$ |
1,515 |
|
$ |
1,547 |
|
(2.1 |
)% |
Manganese-based Alloys |
|
$ |
1,031 |
|
$ |
1,009 |
|
2.2 |
% |
|
$ |
1,054 |
|
(2.2 |
)% |
|
$ |
1,022 |
|
$ |
1,140 |
|
(10.4 |
)% |
Total* |
|
$ |
1,534 |
|
$ |
1,590 |
|
(3.5 |
)% |
|
$ |
1,474 |
|
4.1 |
% |
|
$ |
1,545 |
|
$ |
1,557 |
|
(0.8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average selling price
($/lb.): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silicon Metal |
|
$ |
1.03 |
|
$ |
1.02 |
|
0.5 |
% |
|
$ |
0.99 |
|
3.9 |
% |
|
$ |
1.01 |
|
$ |
1.02 |
|
(0.8 |
)% |
Silicon-based Alloys |
|
$ |
0.69 |
|
$ |
0.70 |
|
(0.4 |
)% |
|
$ |
0.65 |
|
7.3 |
% |
|
$ |
0.69 |
|
$ |
0.70 |
|
(2.1 |
)% |
Manganese-based Alloys |
|
$ |
0.47 |
|
$ |
0.46 |
|
2.2 |
% |
|
$ |
0.48 |
|
(2.2 |
)% |
|
$ |
0.46 |
|
$ |
0.52 |
|
(10.4 |
)% |
Total* |
|
$ |
0.70 |
|
$ |
0.72 |
|
(3.5 |
)% |
|
$ |
0.67 |
|
4.1 |
% |
|
$ |
0.70 |
|
$ |
0.71 |
|
(0.8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_______________* Excludes by-products and other
Sales Prices & Volumes By
Product
During Q4 2020, total product average selling
prices decreased by 3.5% versus Q3 2020. Q4 average selling prices
of silicon metal increased 0.5%, silicon-based alloys prices
decreased 0.4%, and manganese-based alloys prices increased
2.2%.
Sales volumes in Q4 growth by 29.3% versus the
prior quarter. Q4 sales volumes of silicon metal increased 7.2%,
silicon-based alloys increased 35.1%, and manganese-based alloys
increased 45.6% versus Q3 2020.
Cost of Sales
Cost of sales was $225.9 million in Q4 2020, an
increase from $166.2 million in the prior quarter. Cost of sales as
a percentage of sales increased to 70.5% in Q4 2020 versus 63.3%
for Q3 2020, the increase is mainly due to higher sales volume,
lower sales prices, higher energy prices in Europe, lower fixed
cost absorption due to decreased production levels and the negative
impact of planned production stop in a plant in Spain.
Other Operating Expenses
Other operating expenses amounted to $47.1
million in Q4 2020, an increase from $26.9 million in the prior
quarter. This increase is primarily attributable to the accrual for
the purchase of CO2 emission rights, the realized benefit from the
removal of liability relating to an R&D project in France in
Q3, and the increase in commercial expenses resulting from higher
sales volume.
Net Loss Attributable to the
Parent
In Q4 2020, net loss attributable to the Parent
was $83.4 million, or ($0.49) per diluted share, compared to a net
loss attributable to the Parent of $47.3 million, or ($0.28) per
diluted share in Q3 2020.
Adjusted EBITDA
In Q4 2020, adjusted EBITDA was $5.7 million, or
1.8% of sales, compared to adjusted EBITDA of $22.2 million, or
8.5% of sales in Q3 2020, primarily due to higher costs incurred in
Q4 2020.
Conference Call
Ferroglobe management will review the
fourth quarter and full year results of 2020 during a conference
call at 9:00 a.m. Eastern Time on March 2, 2021.
The dial-in number for participants in the
United States is +1 646-741-3167 (conference ID: 6866274).
International callers should dial +1 877-870-9135 (conference ID:
6866274). 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/td6yky7q
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 |
|
Year Ended |
|
Year Ended |
|
|
December 31, 2020 |
|
September 30, 2020 |
|
December 31, 2019 |
|
December 31, 2020 |
|
December 31, 2019 |
Sales |
|
$ |
320,535 |
|
|
$ |
262,673 |
|
|
$ |
376,607 |
|
|
$ |
1,144,434 |
|
|
$ |
1,615,222 |
|
Cost of sales |
|
|
(225,956 |
) |
|
|
(166,231 |
) |
|
|
(314,905 |
) |
|
|
(788,839 |
) |
|
|
(1,214,397 |
) |
Other operating income |
|
|
8,100 |
|
|
|
7,598 |
|
|
|
12,446 |
|
|
|
33,627 |
|
|
|
54,213 |
|
Staff costs |
|
|
(54,428 |
) |
|
|
(56,329 |
) |
|
|
(63,379 |
) |
|
|
(214,765 |
) |
|
|
(285,029 |
) |
Other operating expense |
|
|
(47,112 |
) |
|
|
(26,896 |
) |
|
|
(58,804 |
) |
|
|
(150,027 |
) |
|
|
(225,705 |
) |
Depreciation and amortization
charges, operating allowances and write-downs |
|
|
(25,538 |
) |
|
|
(26,524 |
) |
|
|
(30,029 |
) |
|
|
(108,189 |
) |
|
|
(120,194 |
) |
Impairment losses |
|
|
(2,593 |
) |
|
|
(34,269 |
) |
|
|
(546 |
) |
|
|
(36,863 |
) |
|
|
(175,899 |
) |
Other gain (loss) |
|
|
824 |
|
|
|
1,212 |
|
|
|
98 |
|
|
|
1,449 |
|
|
|
(3,797 |
) |
Operating (loss)
profit |
|
|
(26,168 |
) |
|
|
(38,766 |
) |
|
|
(78,512 |
) |
|
|
(119,173 |
) |
|
|
(355,586 |
) |
Net finance expense |
|
|
(33,963 |
) |
|
|
(13,985 |
) |
|
|
(16,484 |
) |
|
|
(81,124 |
) |
|
|
(61,845 |
) |
Financial derivatives (loss)
gain |
|
|
— |
|
|
|
— |
|
|
|
(1,153 |
) |
|
|
3,168 |
|
|
|
2,729 |
|
Exchange differences |
|
|
7,327 |
|
|
|
13,157 |
|
|
|
4,366 |
|
|
|
25,553 |
|
|
|
2,884 |
|
(Loss) profit before
tax |
|
|
(52,804 |
) |
|
|
(39,594 |
) |
|
|
(91,783 |
) |
|
|
(171,576 |
) |
|
|
(411,818 |
) |
Income tax benefit
(expense) |
|
|
(31,337 |
) |
|
|
(1,841 |
) |
|
|
14,120 |
|
|
|
(17,092 |
) |
|
|
41,541 |
|
(Loss) profit for the
period from continuing operations |
|
|
(84,141 |
) |
|
|
(41,435 |
) |
|
|
(77,663 |
) |
|
|
(188,668 |
) |
|
|
(370,277 |
) |
Profit for the period from
discontinued operations |
|
|
— |
|
|
|
(5,399 |
) |
|
|
4,372 |
|
|
|
(5,399 |
) |
|
|
84,637 |
|
(Loss) profit for the
period |
|
|
(84,141 |
) |
|
|
(46,834 |
) |
|
|
(73,291 |
) |
|
|
(194,067 |
) |
|
|
(285,640 |
) |
Loss (profit) attributable to
non-controlling interest |
|
|
779 |
|
|
|
(450 |
) |
|
|
866 |
|
|
|
3,417 |
|
|
|
5,039 |
|
(Loss) profit
attributable to the parent |
|
$ |
(83,362 |
) |
|
$ |
(47,284 |
) |
|
$ |
(72,425 |
) |
|
$ |
(190,650 |
) |
|
$ |
(280,601 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
$ |
(630 |
) |
|
$ |
(12,242 |
) |
|
$ |
(48,483 |
) |
|
$ |
(10,984 |
) |
|
$ |
(235,392 |
) |
Adjusted EBITDA |
|
$ |
5,737 |
|
|
$ |
22,231 |
|
|
$ |
(30,391 |
) |
|
$ |
32,765 |
|
|
$ |
(29,239 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
169,262 |
|
|
|
169,261 |
|
|
|
169,182 |
|
|
|
169,257 |
|
|
|
169,153 |
|
Diluted |
|
|
169,262 |
|
|
|
169,261 |
|
|
|
169,182 |
|
|
|
169,257 |
|
|
|
169,153 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) profit per
ordinary share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.49 |
) |
|
$ |
(0.28 |
) |
|
$ |
(0.43 |
) |
|
$ |
(1.13 |
) |
|
$ |
(1.66 |
) |
Diluted |
|
$ |
(0.49 |
) |
|
$ |
(0.28 |
) |
|
$ |
(0.43 |
) |
|
$ |
(1.13 |
) |
|
$ |
(1.66 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ferroglobe PLC and
SubsidiariesUnaudited Condensed Consolidated
Statement of Financial Position(in thousands of
U.S. dollars)
|
|
December 31, |
|
September 30, |
|
December 31, |
|
|
2020 |
|
2020 |
|
2019 |
ASSETS |
Non-current assets |
|
|
|
|
|
|
|
|
|
Goodwill |
|
$ |
29,702 |
|
$ |
29,702 |
|
$ |
29,702 |
Other intangible assets |
|
|
20,756 |
|
|
18,876 |
|
|
51,267 |
Property, plant and equipment |
|
|
656,806 |
|
|
640,211 |
|
|
740,906 |
Other non-current financial assets |
|
|
5,057 |
|
|
6,227 |
|
|
2,618 |
Deferred tax assets |
|
|
8,521 |
|
|
50,939 |
|
|
59,551 |
Non-current receivables from related parties |
|
|
2,454 |
|
|
2,343 |
|
|
2,247 |
Other non-current assets |
|
|
11,904 |
|
|
4,960 |
|
|
1,597 |
Non-current restricted cash and cash equivalents |
|
|
22,707 |
|
|
28,551 |
|
|
28,323 |
Total non-current assets |
|
|
757,907 |
|
|
781,809 |
|
|
916,211 |
Current assets |
|
|
|
|
|
|
|
|
|
Inventories |
|
|
245,954 |
|
|
311,269 |
|
|
354,121 |
Trade and other receivables |
|
|
242,262 |
|
|
179,432 |
|
|
309,064 |
Current receivables from related parties |
|
|
3,076 |
|
|
3,055 |
|
|
2,955 |
Current income tax assets |
|
|
12,072 |
|
|
11,264 |
|
|
27,930 |
Other current financial assets |
|
|
1,008 |
|
|
2,360 |
|
|
5,544 |
Other current assets |
|
|
20,714 |
|
|
18,199 |
|
|
23,676 |
Current restricted cash and cash equivalents |
|
|
6,136 |
|
|
— |
|
|
— |
Cash and cash equivalents * |
|
|
102,714 |
|
|
118,874 |
|
|
94,852 |
Total current assets |
|
|
633,936 |
|
|
644,453 |
|
|
818,142 |
Total assets |
|
$ |
1,391,843 |
|
$ |
1,426,262 |
|
$ |
1,734,353 |
|
|
|
|
|
|
|
|
|
|
EQUITY AND LIABILITIES |
Equity |
|
$ |
421,060 |
|
$ |
483,488 |
|
$ |
602,297 |
Non-current liabilities |
|
|
|
|
|
|
|
|
|
Deferred income |
|
|
620 |
|
|
7,454 |
|
|
1,253 |
Provisions |
|
|
79,133 |
|
|
84,779 |
|
|
84,852 |
Bank borrowings |
|
|
32,513 |
|
|
31,958 |
|
|
144,388 |
Lease liabilities |
|
|
29,399 |
|
|
12,655 |
|
|
16,972 |
Debt instruments |
|
|
346,620 |
|
|
345,941 |
|
|
344,014 |
Other financial liabilities |
|
|
39,126 |
|
|
32,554 |
|
|
43,157 |
Other non-current liabilities |
|
|
16,767 |
|
|
16,678 |
|
|
25,906 |
Deferred tax liabilities |
|
|
31,717 |
|
|
47,633 |
|
|
74,057 |
Total non-current liabilities |
|
|
575,895 |
|
|
579,652 |
|
|
734,599 |
Current liabilities |
|
|
|
|
|
|
|
|
|
Provisions |
|
|
52,491 |
|
|
38,121 |
|
|
46,091 |
Bank borrowings |
|
|
75,093 |
|
|
59,318 |
|
|
14,611 |
Lease liabilities |
|
|
10,032 |
|
|
7,960 |
|
|
8,900 |
Debt instruments |
|
|
10,888 |
|
|
2,697 |
|
|
10,937 |
Other financial liabilities |
|
|
25,466 |
|
|
28,016 |
|
|
23,382 |
Payables to related parties |
|
|
3,196 |
|
|
4,162 |
|
|
4,830 |
Trade and other payables |
|
|
149,201 |
|
|
136,371 |
|
|
189,229 |
Current income tax liabilities |
|
|
2,538 |
|
|
140 |
|
|
3,048 |
Other current liabilities |
|
|
65,983 |
|
|
86,337 |
|
|
96,429 |
Total current liabilities |
|
|
394,888 |
|
|
363,122 |
|
|
397,457 |
Total equity and liabilities |
|
$ |
1,391,843 |
|
$ |
1,426,262 |
|
$ |
1,734,353 |
|
|
|
|
|
|
|
|
|
|
Ferroglobe PLC and
SubsidiariesUnaudited Condensed Consolidated
Statement of Cash Flows(in thousands of U.S.
dollars)
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended * |
|
Year Ended |
|
Year Ended * |
|
|
December 31, 2020 |
|
September 30, 2020 |
|
December 31, 2019 |
|
December 31, 2020 |
|
December 31, 2019 |
Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) profit for the period |
|
$ |
(84,141 |
) |
|
$ |
(46,834 |
) |
|
$ |
(73,291 |
) |
|
$ |
(194,067 |
) |
|
$ |
(285,640 |
) |
Adjustments to
reconcile net (loss) profit to net cash used
by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
Income tax (benefit) expense |
|
|
31,337 |
|
|
|
1,841 |
|
|
|
(14,120 |
) |
|
|
17,092 |
|
|
|
(40,528 |
) |
Depreciation and amortization charges, operating allowances and
write-downs |
|
|
25,538 |
|
|
|
26,524 |
|
|
|
30,029 |
|
|
|
108,189 |
|
|
|
123,024 |
|
Net finance expense |
|
|
33,963 |
|
|
|
13,985 |
|
|
|
16,484 |
|
|
|
81,124 |
|
|
|
68,279 |
|
Financial derivatives loss (gain) |
|
|
— |
|
|
|
— |
|
|
|
1,153 |
|
|
|
(3,168 |
) |
|
|
(2,729 |
) |
Exchange differences |
|
|
(7,327 |
) |
|
|
(13,157 |
) |
|
|
(4,366 |
) |
|
|
(25,553 |
) |
|
|
(2,884 |
) |
Impairment losses |
|
|
2,593 |
|
|
|
34,269 |
|
|
|
546 |
|
|
|
36,863 |
|
|
|
175,899 |
|
Net loss (gain) due to changes in the value of asset |
|
|
(242 |
) |
|
|
(246 |
) |
|
|
1,574 |
|
|
|
(158 |
) |
|
|
1,574 |
|
Gain on disposal of discontinued operation |
|
|
— |
|
|
|
5,399 |
|
|
|
(4,372 |
) |
|
|
5,399 |
|
|
|
(85,101 |
) |
Gain on disposal of non-current assets |
|
|
— |
|
|
|
— |
|
|
|
2,223 |
|
|
|
— |
|
|
|
2,223 |
|
Share-based compensation |
|
|
244 |
|
|
|
323 |
|
|
|
1,599 |
|
|
|
1,993 |
|
|
|
4,879 |
|
Other adjustments |
|
|
(581 |
) |
|
|
(967 |
) |
|
|
(3,896 |
) |
|
|
(1,292 |
) |
|
|
— |
|
Changes in operating
assets and liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Increase) decrease in inventories |
|
|
71,754 |
|
|
|
3,725 |
|
|
|
132,493 |
|
|
|
114,585 |
|
|
|
91,531 |
|
(Increase) decrease in trade receivables |
|
|
(53,604 |
) |
|
|
(4,731 |
) |
|
|
29,310 |
|
|
|
71,034 |
|
|
|
30,933 |
|
Increase (decrease) in trade payables |
|
|
(4,667 |
) |
|
|
(20,359 |
) |
|
|
(51,152 |
) |
|
|
(55,405 |
) |
|
|
(63,187 |
) |
Other |
|
|
(10,163 |
) |
|
|
23,849 |
|
|
|
(24,448 |
) |
|
|
(14,199 |
) |
|
|
(45,878 |
) |
Income taxes paid |
|
|
(1,177 |
) |
|
|
(633 |
) |
|
|
(523 |
) |
|
|
11,831 |
|
|
|
(3,589 |
) |
Net cash provided
(used) by operating activities |
|
|
3,527 |
|
|
|
22,988 |
|
|
|
39,243 |
|
|
|
154,268 |
|
|
|
(31,194 |
) |
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and finance income
received |
|
|
13 |
|
|
|
278 |
|
|
|
171 |
|
|
|
630 |
|
|
|
1,673 |
|
Payments due to
investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of subsidiary |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,088 |
|
Other intangible assets |
|
|
(2,654 |
) |
|
|
— |
|
|
|
— |
|
|
|
(2,654 |
) |
|
|
(184 |
) |
Property, plant and equipment |
|
|
(11,861 |
) |
|
|
(8,734 |
) |
|
|
(5,600 |
) |
|
|
(30,257 |
) |
|
|
(32,445 |
) |
Other |
|
|
— |
|
|
|
— |
|
|
|
(621 |
) |
|
|
— |
|
|
|
(1,248 |
) |
Disposals: |
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
Disposal of subsidiaries |
|
|
— |
|
|
|
— |
|
|
|
5,532 |
|
|
|
— |
|
|
|
176,590 |
|
Other non-current assets |
|
|
295 |
|
|
|
46 |
|
|
|
8,668 |
|
|
|
341 |
|
|
|
8,668 |
|
Other |
|
|
— |
|
|
|
— |
|
|
|
353 |
|
|
|
— |
|
|
|
3,768 |
|
Net cash (used)
provided by investing activities |
|
|
(14,207 |
) |
|
|
(8,410 |
) |
|
|
8,503 |
|
|
|
(31,940 |
) |
|
|
165,910 |
|
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Payment for debt issuance
costs |
|
|
(2,077 |
) |
|
|
(608 |
) |
|
|
(12,319 |
) |
|
|
(4,540 |
) |
|
|
(15,117 |
) |
Repayment of hydro leases |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(55,352 |
) |
Repayment of other financial
liabilities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Increase/(decrease) in
bank borrowings: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings |
|
|
169,571 |
|
|
|
8,022 |
|
|
|
174,130 |
|
|
|
177,593 |
|
|
|
245,629 |
|
Payments |
|
|
(161,936 |
) |
|
|
(7,800 |
) |
|
|
(269,399 |
) |
|
|
(235,296 |
) |
|
|
(329,501 |
) |
Proceeds from stock option
exercises |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Amounts paid due to
leases |
|
|
(3,414 |
) |
|
|
(2,463 |
) |
|
|
— |
|
|
|
(10,756 |
) |
|
|
(26,631 |
) |
Other amounts received/(paid)
due to financing activities |
|
|
(6,030 |
) |
|
|
— |
|
|
|
(4,363 |
) |
|
|
(2,422 |
) |
|
|
— |
|
Payments to acquire or redeem
own shares |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Interest paid |
|
|
(827 |
) |
|
|
(17,130 |
) |
|
|
(2,471 |
) |
|
|
(37,912 |
) |
|
|
(43,033 |
) |
Net cash (used)
provided by financing activities |
|
|
(4,713 |
) |
|
|
(19,979 |
) |
|
|
(114,422 |
) |
|
|
(113,333 |
) |
|
|
(224,005 |
) |
Total net cash flows
for the period |
|
|
(15,393 |
) |
|
|
(5,401 |
) |
|
|
(66,676 |
) |
|
|
8,995 |
|
|
|
(89,289 |
) |
Beginning balance of cash and cash equivalents |
|
|
147,425 |
|
|
|
153,242 |
|
|
|
188,043 |
|
|
|
123,175 |
|
|
|
216,647 |
|
Exchange differences on cash and cash equivalents in foreign
currencies |
|
|
(475 |
) |
|
|
(416 |
) |
|
|
1,808 |
|
|
|
(613 |
) |
|
|
(4,183 |
) |
Ending balance of cash
and cash equivalents |
|
$ |
131,557 |
|
|
$ |
147,425 |
|
|
$ |
123,175 |
|
|
$ |
131,557 |
|
|
$ |
123,175 |
|
Cash from continuing
operations |
|
|
102,714 |
|
|
|
118,874 |
|
|
|
94,852 |
|
|
|
102,714 |
|
|
|
94,852 |
|
Current/Non-current restricted
cash and cash equivalents |
|
|
28,843 |
|
|
|
28,551 |
|
|
|
28,323 |
|
|
|
28,843 |
|
|
|
28,323 |
|
Cash and restricted
cash in the statement of financial position |
|
$ |
131,557 |
|
|
$ |
147,425 |
|
|
$ |
123,175 |
|
|
$ |
131,557 |
|
|
$ |
123,175 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* While in previous periods Ferroglobe presented
interest paid as cash flows from operating activities, management
deems interest paid as among activities that alter the borrowing
structure of the Company and therefore most appropriately presented
as among financing activities. This change allows for a fairer
presentation of cash flow to users of the financial statements.
Previous periods have been restated in order to show interest paid
as net cash used in financing activities.
Adjusted EBITDA ($,000):
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Year Ended |
|
Year Ended |
|
|
December 31, 2020 |
|
September 30, 2020 |
|
December 31, 2019 |
|
December 31, 2020 |
|
December 30, 2019 |
(Loss) profit attributable to the parent |
|
$ |
(83,362 |
) |
|
$ |
(47,284 |
) |
|
$ |
(72,425 |
) |
|
$ |
(190,650 |
) |
|
$ |
(280,601 |
) |
(Loss) profit for the period
from discontinued operations |
|
|
— |
|
|
|
5,399 |
|
|
|
(4,372 |
) |
|
|
5,399 |
|
|
|
(84,637 |
) |
Loss (profit) attributable to
non-controlling interest |
|
|
(779 |
) |
|
|
450 |
|
|
|
(866 |
) |
|
|
(3,417 |
) |
|
|
(5,039 |
) |
Income tax (benefit)
expense |
|
|
31,337 |
|
|
|
1,841 |
|
|
|
(14,120 |
) |
|
|
17,092 |
|
|
|
(41,541 |
) |
Net finance expense |
|
|
33,963 |
|
|
|
13,985 |
|
|
|
16,484 |
|
|
|
81,124 |
|
|
|
61,845 |
|
Financial derivatives loss
(gain) |
|
|
— |
|
|
|
— |
|
|
|
1,153 |
|
|
|
(3,168 |
) |
|
|
(2,729 |
) |
Exchange differences |
|
|
(7,327 |
) |
|
|
(13,157 |
) |
|
|
(4,366 |
) |
|
|
(25,553 |
) |
|
|
(2,884 |
) |
Depreciation and amortization
charges, operating allowances and write-downs |
|
|
25,538 |
|
|
|
26,524 |
|
|
|
30,029 |
|
|
|
108,189 |
|
|
|
120,194 |
|
EBITDA |
|
|
(630 |
) |
|
|
(12,242 |
) |
|
|
(48,483 |
) |
|
|
(10,984 |
) |
|
|
(235,392 |
) |
Impairment |
|
|
2,593 |
|
|
|
34,269 |
|
|
|
456 |
|
|
|
36,863 |
|
|
|
174,464 |
|
Revaluation of biological
assets |
|
|
— |
|
|
|
— |
|
|
|
(550 |
) |
|
|
— |
|
|
|
527 |
|
Contract termination
costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,260 |
|
Restructuring and termination
costs |
|
|
3,774 |
|
|
|
— |
|
|
|
3,000 |
|
|
|
3,774 |
|
|
|
5,894 |
|
Energy: France |
|
|
— |
|
|
|
— |
|
|
|
9,682 |
|
|
|
70 |
|
|
|
9,682 |
|
Energy: South Africa |
|
|
— |
|
|
|
— |
|
|
|
3,645 |
|
|
|
— |
|
|
|
3,645 |
|
Staff Costs: South
Africa |
|
|
— |
|
|
|
— |
|
|
|
327 |
|
|
|
155 |
|
|
|
327 |
|
Other Idling Costs |
|
|
— |
|
|
|
204 |
|
|
|
1,532 |
|
|
|
2,887 |
|
|
|
1,532 |
|
(Loss) profit on disposal of
non-core businesses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
822 |
|
Adjusted
EBITDA |
|
$ |
5,737 |
|
|
$ |
22,231 |
|
|
$ |
(30,391 |
) |
|
$ |
32,765 |
|
|
$ |
(29,239 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted profit attributable to
Ferroglobe ($,000):
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Year Ended |
|
Year Ended |
|
|
December 31, 2020 |
|
September 30, 2020 |
|
December 31, 2019 |
|
December 31, 2020 |
|
December 31, 2019 |
(Loss) profit attributable to the parent |
|
$ |
(83,362 |
) |
|
$ |
(47,284 |
) |
|
$ |
(72,425 |
) |
|
$ |
(190,650 |
) |
|
$ |
(280,601 |
) |
Tax rate adjustment |
|
|
48,234 |
|
|
|
14,511 |
|
|
|
15,251 |
|
|
|
71,995 |
|
|
|
90,241 |
|
Impairment |
|
|
1,763 |
|
|
|
23,303 |
|
|
|
310 |
|
|
|
25,067 |
|
|
|
118,636 |
|
Revaluation of biological assets |
|
|
— |
|
|
|
— |
|
|
|
(374 |
) |
|
|
— |
|
|
|
358 |
|
Contract termination costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,297 |
|
Restructuring and termination costs |
|
|
2,566 |
|
|
|
— |
|
|
|
2,040 |
|
|
|
2,566 |
|
|
|
4,008 |
|
Energy: France |
|
|
— |
|
|
|
— |
|
|
|
6,584 |
|
|
|
48 |
|
|
|
6,584 |
|
Energy: South Africa |
|
|
— |
|
|
|
— |
|
|
|
2,479 |
|
|
|
— |
|
|
|
2,479 |
|
Staff Costs: South Africa |
|
|
— |
|
|
|
— |
|
|
|
222 |
|
|
|
105 |
|
|
|
222 |
|
Other Idling Costs |
|
|
— |
|
|
|
139 |
|
|
|
1,042 |
|
|
|
1,963 |
|
|
|
1,042 |
|
(Loss) profit on disposal of non-core businesses |
|
|
— |
|
|
|
(3,671 |
) |
|
|
(2,973 |
) |
|
|
(3,671 |
) |
|
|
(57,553 |
) |
Adjusted (loss) profit
attributable to the parent |
|
$ |
(30,798 |
) |
|
$ |
(13,002 |
) |
|
$ |
(47,845 |
) |
|
$ |
(92,577 |
) |
|
$ |
(108,288 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted profit per
share:
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Year Ended |
|
Year Ended |
|
|
December 31, 2020 |
|
September 30, 2020 |
|
December 31, 2019 |
|
December 31, 2020 |
|
December 31, 2019 |
Diluted (loss) profit per ordinary share |
|
$ |
(0.49 |
) |
|
$ |
(0.28 |
) |
|
$ |
(0.43 |
) |
|
$ |
(1.13 |
) |
|
$ |
(1.66 |
) |
Tax rate adjustment |
|
|
— |
|
|
|
(0.00 |
) |
|
|
0.09 |
|
|
|
— |
|
|
|
0.53 |
|
Impairment |
|
|
0.01 |
|
|
|
0.14 |
|
|
|
0.00 |
|
|
|
0.15 |
|
|
|
0.70 |
|
Revaluation of biological assets |
|
|
— |
|
|
|
— |
|
|
|
(0.00 |
) |
|
|
— |
|
|
|
0.00 |
|
Contract termination costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.04 |
|
Restructuring and termination costs |
|
|
0.02 |
|
|
|
— |
|
|
|
0.01 |
|
|
|
0.02 |
|
|
|
0.02 |
|
Energy: France |
|
|
— |
|
|
|
— |
|
|
|
0.04 |
|
|
|
0.00 |
|
|
|
0.04 |
|
Energy: South Africa |
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
|
|
0.01 |
|
Staff Costs: South Africa |
|
|
— |
|
|
|
— |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
Other Idling Costs |
|
|
— |
|
|
|
0.00 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.01 |
|
(Loss) profit on disposal of non-core businesses |
|
|
— |
|
|
|
(0.02 |
) |
|
|
(0.02 |
) |
|
|
(0.02 |
) |
|
|
(0.34 |
) |
Adjusted diluted
(loss) profit per ordinary share |
|
$ |
(0.47 |
) |
|
$ |
(0.16 |
) |
|
$ |
(0.28 |
) |
|
$ |
(0.98 |
) |
|
$ |
(0.65 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ferroglobe (NASDAQ:GSM)
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