Albemarle lithium producer reports net income of $1.2B in Q1, up 389%
Lithium producer Albemarle has announced net sales of $2.6 billion in Q1 2023, up 129% compared to $1.1 billion in Q1 2022, primarily due to higher lithium prices and volumes.
The company also reported net income attributable to Albemarle of $1.2 billion in Q1 2023, which increased by $1.0 billion or 389% from the prior year’s quarter. Adjusted EBITDA of $1.6 billion increased by $1.2 billion or 269% from the prior-year quarter primarily due to higher net sales.
As of March 31, 2023, Albemarle had estimated liquidity of approximately $3.3 billion, including $1.6 billion of cash and equivalents, the full $1.5 billion under its revolver and $180.5 million available on other credit lines. Total debt was $3.2 billion, representing the company’s debt covenant net debt to adjusted EBITDA of approximately 0.4 times.
Albemarle also reported that the company is revising its full-year 2023 outlook to reflect current lithium market pricing. Net sales are expected to increase 35% to 55% over prior year, primarily driven by a continued global shift to electric vehicles. The year-over-year change in Adjusted EBITDA is expected to be in the range of (5%) to 15% as higher net sales are partially offset by timing impacts of higher priced inventories. The company expects to maintain positive free cash flow.
