Chemical manufacturing giant Albemarle has announced a bumper third quarter with a 10 per cent increase in net sales.
With total net sales reaching $2.3 billion, the company reported a net income of $302.5 million, with a diluted share price of $2.57 per share.
“Albemarle grew net sales by 10 per cent, driven by higher volumes in our energy storage business,” Albemarle chief executive officer Kent Masters said.
“In the third quarter, we formed new strategic partnerships and streamlined our existing MARBL joint venture to better position Albemarle for long-term growth.
“Our investments across the globe continue to progress, with the Meishan project ahead of schedule for completion in early 2024.
“Through our operating model, Albemarle Way of Excellence, we are on track to achieve more than $170 million in productivity benefits in 2023 and expect to achieve additional benefits in 2024 as we continue to operate with a disciplined approach.”
The company said its full-year 2023 outlook reflects expected financial performance assuming recent lithium market pricing continues for the remainder of the year.
Total 2023 net sales are expected to increase up to 35 per cent over the prior year, driven by new mining and conversion capacity delivering up to 35 per cent volumetric growth in energy storage.
Net cash from operations is expected to be in the range of $600 million to $800 million for the full year, with capital expenditures expected to be between $1.9 billion and $2.1 billion for 2023.
The third quarter report was delivered only days after the company backed out of its $6.6 billion takeover of Liontown Resources.
The company withdrew after its five-week due diligence period, in which Gina Rinehart’s Hancock Prospecting steadily acquired Liontown shares, culminating in a 19.9 per cent stake.
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