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2021-10-27

AMG Advanced Metallurgical Group N.V. Reports Third Quarter 2021 Results

Coronavirus Update

  • Active cases at AMG remain at a very low level. We continue to apply all safety measures at our disposal with the highest degree of attention in order to ensure our employees are working in the lowest risk environment possible.

Strategic Highlights

  • The construction of AMG Vanadium’s second spent catalyst recycling facility in Zanesville, Ohio, a $325 million investment and AMG’s largest capital project to date, is proceeding as planned. Commissioning starts in the first quarter of 2022 and the plant is forecast to achieve full run rate capacity in the fourth quarter of 2022.
  • Spodumene 1+ will increase Brazil’s spodumene production by 40,000 tons. The project is currently in detailed engineering and commissioning is planned to start in the second quarter of 2023.
  • AMG’s Supervisory Board approved the construction of the first module of a battery grade lithium hydroxide upgrader in Bitterfeld, Germany in its meeting on October 27, 2021. The total expenditure of $120 million includes the infrastructure necessary to support the next four modules. Commissioning of the facility will commence in the third quarter of 2023.
  • Shell & AMG Recycling B.V. (SARBV) and its local partner, the United Company for Industry (UCI), signed a memorandum of understanding with Saudi Arabian Oil Company (Saudi Aramco) to jointly explore the feasibility of building a recycling “Supercenter” in the Kingdom of Saudi Arabia.
  • AMG is building its first lithium vanadium battery (“LIVA”) for industrial power management applications. In order to manage its entrance into this market, AMG acquired Phyr7 GmbH, Heidelberg, a specialist for artificial intelligence-based power management solutions. The first LIVA system will be installed in one of AMG’s German manufacturing plants and is scheduled to be commissioned in the first quarter of 2022.

Financial Highlights

  • Revenue increased by 58% to $311.9 million in the third quarter 2021 from $197.7 million in the third quarter 2020.
  • EBITDA was $33.1 million in the third quarter of 2021, more than double the third quarter 2020 EBITDA of $14.1 million, marking the fifth straight quarter of sequential improvement.
  • Cash from operating activities was $17.6 million in the third quarter of 2021, and $60.6 million on a year-to-date basis, more than triple the total cash from operating activities for full year 2020.
  • AMG’s liquidity as of September 30, 2021, was $489 million, with $319 million of unrestricted cash and $170 million of revolving credit availability.


Amsterdam, 27 October 2021 (Regulated Information) --- AMG Advanced Metallurgical Group N.V. (“AMG”, EURONEXT AMSTERDAM: “AMG”) reported third quarter 2021 revenue of $311.9 million, a 58% increase over $197.7 million in the third quarter of 2020. EBITDA for the third quarter of 2021 was $33.1 million, the fifth straight quarter of sequential growth after the pandemic low point in the second quarter of 2020.

Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, “With regard to COVID, we continue to apply all safety measures at our disposal with the highest degree of attention in order to ensure our employees are working in the lowest risk environment possible.

“AMG continued to sequentially improve EBITDA in the third quarter despite negative seasonality impacts. All of AMG’s businesses are experiencing ongoing price increase and strong volumes, however the operating environment has grown more challenging, with increases in shipping times and costs and higher energy prices affecting every business unit. AMG passes these cost increases through to its customers where possible, and we will continue to actively manage these cost exposures going forward.

“All segments performed well, most notably our Clean Energy Materials segment where presently our major strategic projects are clustered. This segment continues to deliver strong EBITDA, which increased 44% over the second quarter of 2021, to $18 million, the sixth straight quarter of sequentially increasing EBITDA.

“AMG’s Clean Energy Materials segment strategic projects are proceeding as planned. Each of these projects is oriented toward growing our production of electricity storage materials and/or increasing our footprint in the circular economy, and each of these projects - the second spent catalyst recycling facility, Spodumene 1+, and the battery grade lithium hydroxide upgrader in Germany - will significantly enhance our profitability and contribute to meeting our long-term goals.

“Regarding our project execution capability, the construction of AMG Vanadium’s second spent catalyst recycling facility in Zanesville, Ohio continues to be on time and within budget. As a reminder, we have also met the spodumene production cost and yield in Brazil that was targeted at the time of the project decision. In transitioning into a high growth company through projects of this kind, execution capability is a critical success factor.

“All of these investments are consistent with our CO2 reduction strategy. Our Enabling CO2 Reduction Portfolio (ECO2RP) in 2021 will substantially outperform our 2020 CO2 enabled reduction. In addition, we are preparing comprehensive long-term direct Scope 1 and Scope 2 CO2 reduction targets which will be announced at the Annual General Meeting in May of 2022.”


Key Figures

In 000’s US dollars 
 Q3 ‘21Q3 ‘20Change
Revenue$311,946$197,74058% 
Gross profit51,08320,849145% 
Gross margin16.4% 10.5%  
    
Operating profit (loss)17,346(8,687)N/A
Operating margin5.6% 

(4.4%)  
    
Net loss attributable to shareholders(599)(12,775)95% 
    
EPS - Fully diluted(0.02)(0.45)96% 
    
EBIT (1)22,4753,097626% 
EBITDA (2)33,05114,143
Författare GlobeNewswire