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 first quarter 2022.
FINANCIAL HIGHLIGHTS
- Record Q1 2022 revenue of $715.3
million, up 26% over the prior quarter
- Record Q1 2022 Adjusted EBITDA of
$241.1 million, up 181.7% over the prior quarter
- Adjusted EBITDA margin improvement
of 125% to 33.7% in Q1 2022, up from 15.0% the prior quarter
- Record net profit of $150.8 million
compared to $50.0 million in Q4 2021
- Record earnings per share (diluted)
of $0.80, up from $0.27 per share the prior quarter
- Improved liquidity with total cash
of $176.0 million in Q1, up $59.3 million from the prior
quarter
BUSINESS HIGHLIGHTS
- Record setting start to 2022
supported by robustness in pricing across all product
categories
- Further upside potential for
top-line growth and margin expansion in Q2
- Leveraging unique, global asset
footprint to service global customers, locally
- Quick actions taken to find and
secure alternative sources of raw materials previously purchased
from Russia
- French Labor Administration has
validated the agreement relating to the French restructuring
- Restart of the second furnace at
the Selma, Alabama facility is underway and expected by end of Q2;
doubles the facility’s silicon metal annual production to 22,000
tons
- Potential restart of the 55,000 ton
silicon metal facility in Polokwane, South Africa currently under
review
Dr. Marco Levi, Ferroglobe’s Chief Executive
Officer, commented, “Our strong start in 2022 is the result of the
solid fundamentals across our product portfolio, resetting of
silicon metal contracts, and the numerous changes we are driving
within the Company to improve our overall competitiveness.
Collectively, these actions are translating into top-line growth
and stronger margins, despite the inflationary pressures on our key
inputs, in particular energy. The stellar results are also
validation of the earnings potential of this business, and we look
forward to building on this positive trajectory.”
“As we look at the year ahead, we will continue
executing on our value creation plan, including the
restructuring process implementation in France. With a
heavier weighting towards index-based pricing contracts this year,
coupled with our continued cost cutting efforts, we expect this
momentum in our financial performance to continue in the near-term.
Furthermore, we are evaluating the restart of our silicon capacity
in South Africa. Overall, our assets have experienced improved
operating performance and, with the return of capex spending to
historical levels, we expect to further strengthen our production
capabilities,” concluded Dr. Levi.
First Quarter 2022 Financial
Highlights
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
% |
|
% |
$,000
(unaudited) |
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
|
Q/Q |
|
Y/Y |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
715,265 |
|
|
$ |
569,771 |
|
|
$ |
361,390 |
|
|
|
26 |
% |
|
|
98 |
% |
Raw materials and energy
consumption for production |
|
$ |
(340,555 |
) |
|
$ |
(371,519 |
) |
|
$ |
(250,165 |
) |
|
|
(8 |
%) |
|
|
36 |
% |
Operating profit (loss) |
|
$ |
211,130 |
|
|
$ |
55,885 |
|
|
$ |
(44,183 |
) |
|
|
278 |
% |
|
|
578 |
% |
Operating margin |
|
|
29.5 |
% |
|
|
9.8 |
% |
|
|
(12.2 |
%) |
|
|
|
|
|
|
Adjusted net income
(loss)attributable to the parent |
|
$ |
165,303 |
|
|
$ |
37,038 |
|
|
$ |
(18,172 |
) |
|
|
346 |
% |
|
|
1,010 |
% |
Adjusted diluted EPS |
|
$ |
0.88 |
|
|
$ |
0.18 |
|
|
$ |
(0.10 |
) |
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
241,119 |
|
|
$ |
85,580 |
|
|
$ |
22,069 |
|
|
|
182 |
% |
|
|
993 |
% |
Adjusted EBITDA margin |
|
|
33.7 |
% |
|
|
15.0 |
% |
|
|
6.1 |
% |
|
|
|
|
|
|
Operating cash flow |
|
$ |
65,908 |
|
|
$ |
21,707 |
|
|
$ |
18,277 |
|
|
|
204 |
% |
|
|
261 |
% |
Free cash flow1 |
|
$ |
56,783 |
|
|
$ |
14,249 |
|
|
$ |
9,143 |
|
|
|
299 |
% |
|
|
521 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Working Capital |
|
$ |
613,187 |
|
|
$ |
464,870 |
|
|
$ |
333,726 |
|
|
|
32 |
% |
|
|
84 |
% |
Working Capital as % of
Sales2 |
|
|
21.4 |
% |
|
|
20.4 |
% |
|
|
23.1 |
% |
|
|
|
|
|
|
Cash and Restricted Cash |
|
$ |
176,022 |
|
|
$ |
116,663 |
|
|
$ |
78,298 |
|
|
|
51 |
% |
|
|
125 |
% |
Adjusted Gross Debt3 |
|
$ |
518,093 |
|
|
$ |
513,794 |
|
|
$ |
418,646 |
|
|
|
1 |
% |
|
|
24 |
% |
Equity |
|
$ |
475,477 |
|
|
$ |
320,031 |
|
|
$ |
298,974 |
|
|
|
49 |
% |
|
|
59 |
% |
(1) Free cash flow is calculated as
operating cash flow plus investing cash flow(2) Working capital
based on annualized quarterly sales respectively(3) Adjusted gross
debt excludes bank borrowings on factoring program and impact of
leasing standard IFRS16 at Mar 31, 2022; Dec. 31, 2021 & Mar
31, 2021
Sales
In the first quarter of 2022, Ferroglobe
reported net sales of $715.3 million, up 26% over the prior quarter
and up 98% over Q1 2021. The improvement in our first quarter
results is primarily attributable to higher prices across our
product portfolio, partially offset by lower volumes. The $146
million increase in sales over the prior quarter was primarily
driven by silicon metal, which accounted for $125 million, and
silicon alloys, which accounted for $46 million. The $22 million
decrease in manganese alloys this quarter was expected and is
attributable to lower shipments, as several factors led to
unusually high shipments in Q4 2021.
Raw materials and energy consumption for
production
Raw materials and energy consumption for
production was $341 million in Q1 2022 versus $372 million in the
prior quarter, a decline of 8%. As a percentage of sales, raw
materials and energy consumption for production was 47.6% in the
first quarter of 2022 versus 65.2% in the prior quarter. While we
continued to face inflationary headwinds and the impact of the
energy crisis, the increase in average realized prices more than
offset the cost pressures. Energy in particular impacted the
quarterly results by $14.5 million, of which Spain was only $4.3
million given the production curtailments.
Net Income (Loss) Attributable to the
Parent
In Q1 2022, net profit attributable to the
Parent was $151.2 million, or $0.80 per diluted share, compared to
a net profit attributable to the Parent of $51.4 million, or $0.27
per diluted share in Q4 2021.
Adjusted EBITDA
In Q1 2022, Adjusted EBITDA was $241.1 million,
or 33.7% of sales, an increase of 181.7% compared to adjusted
EBITDA of $85.6 million, or 15.0% of sales in Q4 2021. The increase
in the Q1 2022 Adjusted EBITDA is primarily attributable to higher
average realized selling prices, particularly due to the silicon
metal contracts resetting. Overall, the impact from pricing was
$215.5 million, while the impact form volumes was negative $6.7
million. During the quarter, the impact of higher costs was $59.9
million, of which approximately half is attributable to higher
input costs and another $14.5 million attributable to higher energy
costs in France, the United States and Spain.
Total Cash
The total cash balance was $176.0 million as of
March 31, 2022, up $59.3 million from $116.7 million as of December
31, 2021.
During Q1 2022, we generated positive operating
cash flow of $65.9 million, had negative cash flow from investing
activities of $9.1 million, and generated $2.6 million in cash flow
from financing activities.
Total Working Capital
Total working capital was $613.2 million in the
first quarter of 2022, increasing from $464.9 million at December
31, 2021. The $148.3 million increase in working capital was due
primarily to a $118.9 million increase in accounts receivable as a
result of higher sales, and a $72.5 million increase in inventory.
On a relative basis, we successfully kept working capital as a
percentage of sales flat during the first quarter at 21.4% in Q1
2022, compared to 20.4% during the prior quarter. This is largely
attributable to the financial discipline introduced to our
operations over the past year.
Beatriz García-Cos, Ferroglobe’s Chief Financial
Officer, commented, “As we continue to improve on our top-line,
margins and net profitability, cash generation is expected to
accelerate. We have worked relentlessly the past few years to
turnaround our financial performance and are now focused on
ensuring that the Company remains competitive operationally and has
a strong and flexible balance sheet. Hence, our top priorities for
the year are to bolster liquidity and deploy our near-term cash
flows towards significant debt repayment and reinvestment in our
assets.”
Product Category Highlights
Silicon Metal
|
|
Quarter Ended |
|
Quarter Ended |
|
|
|
Quarter Ended |
|
|
|
Twelve Months Ended |
|
|
March 31, 2022 |
|
December 31, 2021 |
|
Change |
|
March 31, 2021 |
|
Change |
|
December 31, 2021 |
Shipments in metric tons: |
|
|
56,349 |
|
|
|
63,681 |
|
|
(11.5 |
)% |
|
|
61,275 |
|
|
(8.0 |
)% |
|
|
253,991 |
|
Average selling price ($/MT): |
|
|
5,552 |
|
|
|
2,944 |
|
|
88.6 |
% |
|
|
2,285 |
|
|
143.0 |
% |
|
|
2,511 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silicon Metal Revenue
($,000) |
|
|
312,850 |
|
|
|
187,477 |
|
|
66.9 |
% |
|
|
140,013 |
|
|
123.4 |
% |
|
|
637,695 |
|
Silicon Metal
Adj.EBITDA ($,000) |
|
|
151,661 |
|
|
|
32,501 |
|
|
366.6 |
% |
|
|
14,762 |
|
|
927.4 |
% |
|
|
72,346 |
|
Silicon Metal
Adj.EBITDA Mgns |
|
|
48.5 |
% |
|
|
17.3 |
% |
|
|
|
|
10.5 |
% |
|
|
|
|
11.3 |
% |
Silicon metal revenue in the first quarter was
$312.9 million, an increase of 66.9% over the prior quarter. Total
shipments of silicon metal decreased 11.5%. While demand from the
chemical end-market remained strong, higher energy costs,
particularly in Europe, led some aluminum producers to temporarily
curtail production. Furthermore, we experienced a delay in the
restart of the first furnace at the Selma, Alabama facility,
adversely impacting our quarterly shipments, and faced a
transportation strike in Spain which adversely impacted some
shipments. Given the resetting of the prior fixed priced contracts,
the average realized prices benefited significantly in Q1 2022.
Adjusted EBITDA for silicon metal increased to $151.7 million
during the first quarter, up 366.6% from $32.5 million the prior
quarter.
Silicon-Based Alloys
|
|
Quarter Ended |
|
Quarter Ended |
|
|
|
Quarter Ended |
|
|
|
Twelve Months Ended |
|
|
March 31, 2022 |
|
December 31, 2021 |
|
Change |
|
March 31, 2021 |
|
Change |
|
December 31, 2021 |
Shipments in metric tons: |
|
|
57,594 |
|
|
|
60,078 |
|
|
(4.1 |
)% |
|
|
61,604 |
|
|
(6.5 |
)% |
|
|
242,766 |
|
Average selling price ($/MT): |
|
|
3,680 |
|
|
|
2,770 |
|
|
32.9 |
% |
|
|
1,665 |
|
|
121.0 |
% |
|
|
2,058 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silicon-based Alloys
Revenue ($,000) |
|
|
211,946 |
|
|
|
166,439 |
|
|
27.3 |
% |
|
|
102,571 |
|
|
106.6 |
% |
|
|
499,584 |
|
Silicon-based Alloys
Adj.EBITDA ($,000) |
|
|
78,411 |
|
|
|
51,174 |
|
|
53.2 |
% |
|
|
10,094 |
|
|
676.8 |
% |
|
|
81,022 |
|
Silicon-based Alloys
Adj.EBITDA Mgns |
|
|
37.0 |
% |
|
|
30.7 |
% |
|
|
|
|
9.8 |
% |
|
|
|
|
16.2 |
% |
Silicon-based alloys revenue in the first
quarter was $211.9 million, an increase of 27.3% over the prior
quarter. The average realized selling price improve by 32.9%,
benefiting from the significant increase in the index pricing
during Q4 2021. Total shipments decreased 4.1%, primarily in
Europe, due to lower production in Spain as a result of energy
related curtailments, a production issue in South Africa which has
since been addressed, and logistical issues in South Africa. The
ferrosilicon market is directly impacted by the Russia-Ukraine war,
and index pricing has improved during Q1 2022, which positively
impacts our business in Q2 2022. Adjusted EBITDA for the silicon-
based alloys portfolio increased to $78.4 million, up 53.2% from
$51.2 million the prior quarter.
Manganese-Based Alloys
|
|
Quarter Ended |
|
Quarter Ended |
|
|
|
Quarter Ended |
|
|
|
Twelve Months Ended |
|
|
March 31, 2022 |
|
December 31, 2021 |
|
Change |
|
March 31, 2021 |
|
Change |
|
December 31, 2021 |
Shipments in metric tons: |
|
|
75,082 |
|
|
|
97,053 |
|
|
(22.6 |
)% |
|
|
72,609 |
|
|
3.4 |
% |
|
|
314,439 |
|
Average selling price ($/MT): |
|
|
1,925 |
|
|
|
1,720 |
|
|
11.9 |
% |
|
|
1,174 |
|
|
64.0 |
% |
|
|
1,492 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Manganese-based Alloys
Revenue ($,000) |
|
|
144,533 |
|
|
|
166,953 |
|
|
(13.4 |
)% |
|
|
85,243 |
|
|
69.6 |
% |
|
|
469,138 |
|
Manganese-based Alloys
Adj.EBITDA ($,000) |
|
|
20,371 |
|
|
|
21,360 |
|
|
(4.6 |
)% |
|
|
10,174 |
|
|
100.2 |
% |
|
|
69,690 |
|
Manganese-based Alloys
Adj.EBITDA Mgns |
|
|
14.1 |
% |
|
|
12.8 |
% |
|
|
|
|
11.9 |
% |
|
|
|
|
14.9 |
% |
Manganese-based alloy revenue in the first
quarter was $144.5 million, a decrease of 13.4% over the prior
quarter. Total shipments were in-line with management’s
expectations as the Q4 2021 volumes reflect a one-off benefit of
shipments which were carried over from the prior quarter. Averaged
realized selling prices were positively impacted by the increase in
index pricing in Q4 2021, which continued in Q1 2022. During the
quarter, Adjusted EBITDA from our manganese-based alloys portfolio
was $20.4 million, down 4.6% over the prior quarter as a result of
lower volumes and higher input costs. Manganese-based alloys are
also directly impacted by the Russia-Ukraine conflict. Since the
start of the war at the end of February, the index price for
manganese-alloys has increased with looming uncertainty around
shipments from the region.
COVID-19
COVID-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. COVID-19 and its consequences have significantly
impacted and continue to impact our business, operations, and
financial results. The extent to which COVID-19 impacts our
business, operations, and financial results going forward will
depend on the factors described above and numerous other evolving
factors that we may not be able to accurately predict or assess,
including the duration and scope of the COVID-19 pandemic; the
effectiveness of vaccines or treatments; COVID-19’s impact on
global and regional economies and economic activity, including the
duration and magnitude of its impact on unemployment rates; its
short and longer-term impact on the demand for our products, group
business, and levels of customer confidence; the ability of our
owners to successfully navigate the impacts of COVID-19; and how
quickly economies, and demand recovers after the pandemic
subsides.
COVID-19 has negatively impacted, and in the
future may negatively impact to an extent we are unable to predict,
our revenues. In addition, COVID-19 and its impact on global and
regional economies, and the specialty chemical industry in
particular, has made it difficult to obtain financing and has
increased the probability that we will be unable or unwilling to
service, repay or refinance existing indebtedness. If a significant
number of our sales volumes are terminated as a result of
bankruptcies, sales or foreclosures, our results of operations
could be materially adversely affected. Also, testing our
intangible assets or goodwill for impairments could result in
additional charges, which could be material. For the reasons set
forth above, COVID-19 has had and may in the future will have a
material adverse effect on our business, operations, and financial
condition.
Russia – Ukraine War
The recent outbreak of war between Russia and
Ukraine has disrupted supply chains and caused instability in the
global economy, while the United States and the European Union,
among other countries, announced sanctions against Russia. The
ongoing conflict could result in the imposition of further economic
sanctions against Russia, and given Russia’s role as global
exporter of metcoke, anthracite and electrodes, the Company’s
business may be impacted. Currently, the Company’s charter
contracts have not been affected by the events in Russia and
Ukraine.
However, it is possible that in the future third
parties with whom the Company has or will have charter contracts
may be impacted by such events. Russia and Ukraine are meaningful
producers of silicon metal, ferroalloys and manganese-based alloys,
exporting into our markets. Management continually tracks
developments in the conflict in Ukraine and actively manages our
response to potential disruptions to the business.
Subsequent events
Agreement with the French Works
Council
On May 4, 2022, the Company received validation
from the French Labor Administration relating to a process that was
initiated in April 2021 when Ferroglobe engaged the French Works
Councils to discuss proposals for its asset optimization program
designed to safeguard its long-term future in Europe.
Collectively, this agreement results in 195
potential job terminations and 35 employee transfers to other
facilities.
Conference Call
Ferroglobe invites all interested persons to
participate on its conference call at 8:30 AM, U.S. Eastern
Daylight Time. Please dial-in at least five minutes prior to the
call to register. The call may also be accessed via an audio
webcast.
Date: May 11, 2022Time: 8:30 AM EDT
Listen via Internet:
https://edge.media-server.com/mmc/p/iyiino9i
United States: +1 877-870-9135 (conference ID:
5448396)International: +1 646-741-3167 (conference ID: 5448396)
About Ferroglobe
Ferroglobe is one of the world’s leading
suppliers of silicon metal, silicon- and manganese-based specialty
alloys, and other 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
This document may contain summarised,
non-audited or non-GAAP financial information. The information
contained herein should therefore be considered as a whole and in
conjunction with all the public information regarding the Company
available, including any other documents released by the Company
that may contain more detailed information.Adjusted EBITDA,
adjusted EBITDA margin, adjusted net profit, adjusted profit per
share, working capital and net debt, are non-IFRS financial metrics
that management uses in its decision making. Ferroglobe has
included these financial metrics to provide supplemental measures
of its performance. The Company believes these metrics are
important and useful to investors 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 |
|
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
|
December 31, 2021 |
Sales |
|
$ |
715,265 |
|
|
$ |
569,771 |
|
|
$ |
361,390 |
|
|
$ |
1,778,908 |
|
Raw materials and energy
consumption for production |
|
|
(340,555 |
) |
|
|
(371,519 |
) |
|
|
(250,165 |
) |
|
|
(1,184,896 |
) |
Other operating income |
|
|
23,008 |
|
|
|
39,619 |
|
|
|
1,913 |
|
|
|
110,085 |
|
Staff costs |
|
|
(81,986 |
) |
|
|
(72,068 |
) |
|
|
(95,267 |
) |
|
|
(280,917 |
) |
Other operating
expense(1) |
|
|
(83,176 |
) |
|
|
(87,015 |
) |
|
|
(36,835 |
) |
|
|
(296,809 |
) |
Depreciation and amortization
charges, operating allowances and write-downs |
|
|
(21,109 |
) |
|
|
(24,549 |
) |
|
|
(25,285 |
) |
|
|
(97,328 |
) |
Impairment gain |
|
|
— |
|
|
|
497 |
|
|
|
— |
|
|
|
137 |
|
Other gain (loss) |
|
|
(317 |
) |
|
|
1,149 |
|
|
|
66 |
|
|
|
2,206 |
|
Operating profit
(loss) |
|
|
211,130 |
|
|
|
55,885 |
|
|
|
(44,183 |
) |
|
|
31,386 |
|
Net finance expense(2) |
|
|
(12,455 |
) |
|
|
(18,516 |
) |
|
|
(15,864 |
) |
|
|
(148,936 |
) |
Financial derivatives
gain |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Exchange differences |
|
|
(4,393 |
) |
|
|
9,876 |
|
|
|
(9,314 |
) |
|
|
(2,386 |
) |
Profit (loss) before
tax |
|
|
194,282 |
|
|
|
47,245 |
|
|
|
(69,361 |
) |
|
|
(119,936 |
) |
Income tax benefit (loss) |
|
|
(43,495 |
) |
|
|
2,789 |
|
|
|
844 |
|
|
|
4,562 |
|
Profit (loss) for the
period |
|
|
150,787 |
|
|
|
50,034 |
|
|
|
(68,517 |
) |
|
|
(115,374 |
) |
Loss attributable to
non-controlling interest |
|
|
376 |
|
|
|
1,412 |
|
|
|
1,135 |
|
|
|
4,750 |
|
Profit (loss) attributable to
the parent |
|
$ |
151,163 |
|
|
$ |
51,446 |
|
|
$ |
(67,382 |
) |
|
$ |
(110,624 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
$ |
232,239 |
|
|
$ |
80,434 |
|
|
$ |
(18,898 |
) |
|
$ |
128,714 |
|
Adjusted EBITDA |
|
$ |
241,119 |
|
|
$ |
85,580 |
|
|
$ |
22,069 |
|
|
$ |
179,330 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
187,408 |
|
|
|
187,358 |
|
|
|
169,291 |
|
|
|
176,508 |
|
Diluted |
|
|
188,583 |
|
|
|
188,587 |
|
|
|
169,291 |
|
|
|
176,508 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) per
ordinary share |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.81 |
|
|
$ |
0.27 |
|
|
$ |
(0.40 |
) |
|
$ |
(0.63 |
) |
Diluted |
|
$ |
0.80 |
|
|
$ |
0.27 |
|
|
$ |
(0.40 |
) |
|
$ |
(0.63 |
) |
(1) The earn-out
provision was updated in the 20F filing. The calibration of the
econometric model used to estimate the provision was adjusted by
the independent expert (2) This includes the valuation of effect
consequence of classifying the entire Reindus loan as short-term.
See next page for further explanations
|
Ferroglobe PLC and SubsidiariesUnaudited
Condensed Consolidated Statement of Financial
Position(in thousands of U.S.
dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
March 31 |
|
|
2022 |
|
2021 |
|
2021 |
ASSETS |
Non-current
assets |
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
$ |
29,702 |
|
|
$ |
29,702 |
|
|
$ |
29,702 |
|
Other intangible assets |
|
|
188,407 |
|
|
|
100,642 |
|
|
|
25,891 |
|
Property, plant and equipment |
|
|
548,862 |
|
|
|
554,914 |
|
|
|
593,355 |
|
Other non-current financial assets |
|
|
3,977 |
|
|
|
4,091 |
|
|
|
4,984 |
|
Deferred tax assets |
|
|
246 |
|
|
|
7,010 |
|
|
|
620 |
|
Non-current receivables from related parties |
|
|
1,665 |
|
|
|
1,699 |
|
|
|
2,345 |
|
Other non-current assets |
|
|
18,819 |
|
|
|
18,734 |
|
|
|
11,765 |
|
Non-current restricted cash and cash equivalents |
|
|
2,220 |
|
|
|
2,272 |
|
|
|
— |
|
Total non-current
assets |
|
|
793,898 |
|
|
|
719,064 |
|
|
|
668,662 |
|
Current
assets |
|
|
|
|
|
|
|
|
|
|
|
|
Inventories |
|
|
362,298 |
|
|
|
289,797 |
|
|
|
228,145 |
|
Trade and other receivables |
|
|
499,953 |
|
|
|
381,073 |
|
|
|
276,633 |
|
Current receivables from related parties |
|
|
2,784 |
|
|
|
2,841 |
|
|
|
3,063 |
|
Current income tax assets |
|
|
408 |
|
|
|
7,660 |
|
|
|
12,277 |
|
Other current financial assets |
|
|
203 |
|
|
|
104 |
|
|
|
1,004 |
|
Other current assets |
|
|
11,838 |
|
|
|
8,408 |
|
|
|
45,028 |
|
Current restricted cash and cash equivalents |
|
|
— |
|
|
|
— |
|
|
|
6,069 |
|
Cash and cash equivalents |
|
|
173,802 |
|
|
|
114,391 |
|
|
|
78,298 |
|
Total current
assets |
|
|
1,051,286 |
|
|
|
804,274 |
|
|
|
650,517 |
|
Total
assets |
|
$ |
1,845,184 |
|
|
$ |
1,523,338 |
|
|
$ |
1,319,179 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY AND LIABILITIES |
Equity |
|
$ |
475,477 |
|
|
$ |
320,031 |
|
|
$ |
298,974 |
|
Non-current
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Deferred income |
|
|
70,699 |
|
|
|
895 |
|
|
|
2,733 |
|
Provisions |
|
|
57,858 |
|
|
|
60,958 |
|
|
|
106,220 |
|
Bank borrowings |
|
|
3,360 |
|
|
|
3,670 |
|
|
|
5,042 |
|
Lease liabilities |
|
|
10,636 |
|
|
|
9,968 |
|
|
|
11,942 |
|
Debt instruments |
|
|
404,954 |
|
|
|
404,938 |
|
|
|
347,310 |
|
Other financial liabilities(1) |
|
|
38,674 |
|
|
|
4,549 |
|
|
|
37,530 |
|
Other Obligations(2) |
|
|
37,241 |
|
|
|
38,082 |
|
|
|
15,205 |
|
Other non-current liabilities(2) |
|
|
— |
|
|
|
1,476 |
|
|
|
1,522 |
|
Deferred tax liabilities |
|
|
35,423 |
|
|
|
25,145 |
|
|
|
26,834 |
|
Total non-current
liabilities |
|
|
658,845 |
|
|
|
549,681 |
|
|
|
554,338 |
|
Current
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Provisions |
|
|
159,386 |
|
|
|
137,625 |
|
|
|
97,521 |
|
Bank borrowings |
|
|
95,359 |
|
|
|
95,297 |
|
|
|
73,965 |
|
Lease liabilities |
|
|
7,869 |
|
|
|
8,390 |
|
|
|
7,596 |
|
Debt instruments |
|
|
6,382 |
|
|
|
35,359 |
|
|
|
2,656 |
|
Other financial liabilities(1) |
|
|
62,141 |
|
|
|
62,464 |
|
|
|
24,983 |
|
Payables to related parties |
|
|
8,685 |
|
|
|
9,545 |
|
|
|
5,042 |
|
Trade and other payables |
|
|
249,064 |
|
|
|
206,000 |
|
|
|
171,052 |
|
Current income tax liabilities |
|
|
21,208 |
|
|
|
1,775 |
|
|
|
3,947 |
|
Other Obligations(2) |
|
|
18,369 |
|
|
|
22,843 |
|
|
|
4,841 |
|
Other current liabilities(2) |
|
|
82,399 |
|
|
|
74,328 |
|
|
|
74,264 |
|
Total current
liabilities |
|
|
710,862 |
|
|
|
653,626 |
|
|
|
465,867 |
|
Total equity and
liabilities |
|
$ |
1,845,184 |
|
|
$ |
1,523,338 |
|
|
$ |
1,319,179 |
|
(1) On January 25, 2022, the Ministry
opened a hearing to decide on reimbursement of the loan. The
company presented its allegations on February 15, 2022. Based on
those allegations, the reimbursement procedure has been suspended
and a new final report is expected to be made by the Ministry by
the end of 2022 ending the administrative procedure and
establishing the definitive amount of the partial reimbursement to
be made. However, for accounting purposes the entire loan was
considered short-term(2) In 2021 we disaggregated “Other
liabilities” into an additional line to the balance sheet “Other
obligations“ to separately present certain contractual obligations
whose nature and function differs from other items presented in the
“Other liabilities line”, so as to allow a better understanding of
the Company´s financial position.
|
Ferroglobe PLC and SubsidiariesUnaudited
Condensed Consolidated Statement of Cash Flows |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Year Ended |
|
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
|
December 31, 2021 |
Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) for the period |
|
$ |
150,787 |
|
|
$ |
50,034 |
|
|
$ |
(68,517 |
) |
|
$ |
(115,374 |
) |
Adjustments to
reconcile net (loss) profitto net cash used by
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (benefit) expense |
|
|
43,495 |
|
|
|
(2,789 |
) |
|
|
(844 |
) |
|
|
(4,562 |
) |
Depreciation and amortization charges, operating allowances and
write-downs |
|
|
21,109 |
|
|
|
24,549 |
|
|
|
25,285 |
|
|
|
97,328 |
|
Net finance expense |
|
|
12,455 |
|
|
|
18,516 |
|
|
|
15,864 |
|
|
|
148,936 |
|
Financial derivatives loss (gain) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Exchange differences |
|
|
4,393 |
|
|
|
(9,876 |
) |
|
|
9,314 |
|
|
|
2,386 |
|
Impairment losses |
|
|
— |
|
|
|
(497 |
) |
|
|
— |
|
|
|
(137 |
) |
Net loss (gain) due to changes in the value of asset |
|
|
(6 |
) |
|
|
(70 |
) |
|
|
(21 |
) |
|
|
(758 |
) |
Gain on disposal of non-current assets |
|
|
302 |
|
|
|
— |
|
|
|
(43 |
) |
|
|
(1,386 |
) |
Share-based compensation |
|
|
1,807 |
|
|
|
1,464 |
|
|
|
213 |
|
|
|
3,627 |
|
Other adjustments |
|
|
21 |
|
|
|
(1,080 |
) |
|
|
(2 |
) |
|
|
(62 |
) |
Changes in operating
assets and liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
(Increase) decrease in inventories |
|
|
(73,611 |
) |
|
|
(11,137 |
) |
|
|
11,446 |
|
|
|
(60,296 |
) |
(Increase) decrease in trade receivables |
|
|
(121,767 |
) |
|
|
(83,434 |
) |
|
|
(41,692 |
) |
|
|
(161,434 |
) |
Increase (decrease) in trade payables |
|
|
40,073 |
|
|
|
12,908 |
|
|
|
26,152 |
|
|
|
64,382 |
|
Other |
|
|
(12,463 |
) |
|
|
26,037 |
|
|
|
41,179 |
|
|
|
29,803 |
|
Income taxes paid |
|
|
(687 |
) |
|
|
(2,918 |
) |
|
|
(57 |
) |
|
|
(3,794 |
) |
Interest paid |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net cash provided
(used) by operating activities |
|
|
65,908 |
|
|
|
21,707 |
|
|
|
18,277 |
|
|
|
(1,341 |
) |
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest and finance income
received |
|
|
68 |
|
|
|
23 |
|
|
|
35 |
|
|
|
207 |
|
Payments due to
investments: |
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of subsidiary |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other intangible assets |
|
|
— |
|
|
|
— |
|
|
|
(3,486 |
) |
|
|
— |
|
Property, plant and equipment |
|
|
(9,193 |
) |
|
|
(10,480 |
) |
|
|
(5,683 |
) |
|
|
(27,597 |
) |
Other |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Disposals: |
|
|
|
|
|
|
|
|
|
|
|
|
Disposal of subsidiaries |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other non-current assets |
|
|
— |
|
|
|
1,376 |
|
|
|
— |
|
|
|
1,919 |
|
Other |
|
|
— |
|
|
|
1,623 |
|
|
|
— |
|
|
|
1,623 |
|
Net cash (used)
provided by investing activities |
|
|
(9,125 |
) |
|
|
(7,458 |
) |
|
|
(9,134 |
) |
|
|
(23,848 |
) |
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Payment for debt and equity
issuance costs |
|
|
— |
|
|
|
— |
|
|
|
(6,598 |
) |
|
|
(43,755 |
) |
Proceeds from equity
issuance |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
40,000 |
|
Proceeds from debt
issuance |
|
|
(4,943 |
) |
|
|
— |
|
|
|
— |
|
|
|
60,000 |
|
Increase/(decrease) in
bank borrowings: |
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings |
|
|
244,164 |
|
|
|
221,587 |
|
|
|
127,690 |
|
|
|
659,083 |
|
Payments |
|
|
(237,627 |
) |
|
|
(210,902 |
) |
|
|
(157,464 |
) |
|
|
(671,467 |
) |
Proceeds from stock option
exercises |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Amounts paid due to
leases |
|
|
(2,518 |
) |
|
|
(2,617 |
) |
|
|
(2,856 |
) |
|
|
(11,232 |
) |
Other amounts received/(paid)
due to financing activities |
|
|
38,298 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Payments to acquire or redeem
own shares |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Interest paid |
|
|
(34,799 |
) |
|
|
(704 |
) |
|
|
(17,015 |
) |
|
|
(22,177 |
) |
Net cash (used)
provided by financing activities |
|
|
2,575 |
|
|
|
7,364 |
|
|
|
(56,243 |
) |
|
|
10,452 |
|
Total net cash flows
for the period |
|
|
59,358 |
|
|
|
21,613 |
|
|
|
(47,100 |
) |
|
|
(14,737 |
) |
Beginning balance of cash and cash equivalents |
|
|
116,663 |
|
|
|
95,043 |
|
|
|
131,557 |
|
|
|
131,557 |
|
Exchange differences on cash and cash equivalents in foreign
currencies |
|
|
1 |
|
|
|
7 |
|
|
|
(90 |
) |
|
|
(157 |
) |
Ending balance of cash
and cash equivalents |
|
$ |
176,022 |
|
|
$ |
116,663 |
|
|
$ |
84,367 |
|
|
$ |
116,663 |
|
Cash from continuing
operations |
|
|
173,802 |
|
|
|
114,391 |
|
|
|
78,298 |
|
|
|
114,391 |
|
Current/Non-current restricted
cash and cash equivalents |
|
|
2,220 |
|
|
|
2,272 |
|
|
|
6,069 |
|
|
|
2,272 |
|
Cash and restricted
cash in the statement of financial position |
|
$ |
176,022 |
|
|
$ |
116,663 |
|
|
$ |
84,367 |
|
|
$ |
116,663 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
($,000): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Year Ended |
|
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
|
December 31, 2021 |
Profit (loss) attributable to the parent |
|
$ |
151,163 |
|
|
$ |
51,446 |
|
|
$ |
(67,382 |
) |
|
$ |
(110,624 |
) |
Profit (loss) for the period
from discontinued operations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Profit (loss) attributable to
non-controlling interest |
|
|
(376 |
) |
|
|
(1,412 |
) |
|
|
(1,135 |
) |
|
|
(4,750 |
) |
Income tax (benefit)
expense |
|
|
43,495 |
|
|
|
(2,789 |
) |
|
|
(844 |
) |
|
|
(4,562 |
) |
Net finance expense |
|
|
12,455 |
|
|
|
18,516 |
|
|
|
15,864 |
|
|
|
148,936 |
|
Financial derivatives loss
(gain) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Exchange differences |
|
|
4,393 |
|
|
|
(9,876 |
) |
|
|
9,314 |
|
|
|
2,386 |
|
Depreciation and amortization
charges, operating allowances and write-downs |
|
|
21,109 |
|
|
|
24,549 |
|
|
|
25,285 |
|
|
|
97,328 |
|
EBITDA |
|
|
232,239 |
|
|
|
80,434 |
|
|
|
(18,898 |
) |
|
|
128,714 |
|
Impairment |
|
|
— |
|
|
|
(497 |
) |
|
|
— |
|
|
|
(137 |
) |
Restructuring and termination
costs |
|
|
5,909 |
|
|
|
455 |
|
|
|
36,588 |
|
|
|
27,368 |
|
New strategy
implementation |
|
|
2,971 |
|
|
|
5,188 |
|
|
|
4,379 |
|
|
|
22,700 |
|
Energy: France |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Staff Costs: South
Africa |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other Idling Costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Pension Plan buyout |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
685 |
|
Provision Ithaka |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted
EBITDA |
|
$ |
241,119 |
|
|
$ |
85,580 |
|
|
$ |
22,069 |
|
|
$ |
179,330 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted profit
attributable to Ferroglobe ($,000): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Year Ended |
|
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
|
December 31, 2021 |
Profit (loss) attributable to the parent |
|
$ |
151,163 |
|
|
$ |
51,446 |
|
|
$ |
(67,382 |
) |
|
$ |
(110,624 |
) |
Tax rate adjustment |
|
|
6,931 |
|
|
|
(17,907 |
) |
|
|
21,352 |
|
|
|
33,818 |
|
Impairment |
|
|
— |
|
|
|
(338 |
) |
|
|
— |
|
|
|
(93 |
) |
Restructuring and termination costs |
|
|
4,797 |
|
|
|
309 |
|
|
|
24,880 |
|
|
|
18,610 |
|
New strategy implementation |
|
|
2,412 |
|
|
|
3,528 |
|
|
|
2,978 |
|
|
|
15,436 |
|
Energy: France |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Energy: South Africa |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Staff Costs: South Africa |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other Idling Costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Tolling agreement |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Bargain purchase gain |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Gain on sale of hydro plant assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Share-based compensation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Pension Plan buyout |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
466 |
|
Adjusted profit (loss)
attributable to the parent |
|
$ |
165,303 |
|
|
$ |
37,038 |
|
|
$ |
(18,172 |
) |
|
$ |
(42,387 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted
profit per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Year Ended |
|
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
|
December 31, 2021 |
Diluted profit (loss) per ordinary share |
|
$ |
0.80 |
|
|
$ |
0.27 |
|
|
$ |
(0.40 |
) |
|
$ |
(0.63 |
) |
Tax rate adjustment |
|
|
0.04 |
|
|
|
(0.11 |
) |
|
|
0.13 |
|
|
|
0.20 |
|
Impairment |
|
|
— |
|
|
|
(0.00 |
) |
|
|
— |
|
|
|
(0.00 |
) |
Restructuring and termination costs |
|
|
0.03 |
|
|
|
0.00 |
|
|
|
0.15 |
|
|
|
0.11 |
|
New strategy implementation |
|
|
0.01 |
|
|
|
0.02 |
|
|
|
0.02 |
|
|
|
0.09 |
|
Energy: France |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Staff Costs: South Africa |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other Idling Costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Restructuring and termination costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Tolling agreement |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Bargain purchase gain |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Gain on sale of hydro plant assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Share-based compensation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Pension Plan buyout |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.00 |
|
Adjusted diluted
profit (loss) per ordinary share |
|
$ |
0.88 |
|
|
$ |
0.18 |
|
|
$ |
(0.10 |
) |
|
$ |
(0.23 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ferroglobe (NASDAQ:GSM)
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From Aug 2024 to Sep 2024
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From Sep 2023 to Sep 2024