Albemarle Announces Further Improved Full-Year 2022 Guidance

 
 

  Enhancement reflects additional lithium contract renegotiations  

 

ALBemarle Corporation (NYSE: ALB), a leader in the global specialty chemicals industry, today announced improved full-year 2022 guidance primarily due to the completion of additional lithium contract renegotiations following the company's Q1 2022 earnings release on May 4, 2022 .

 
 

  Albemarle Corp. Logo. (PRNewsFoto/Albemarle Corporation) 

 
 

"Over the past 12 months, we've made significant progress in renegotiating more variable-priced contracts with our lithium customers.  Implementation of these contracts is a key driver of the expected year-over-year improvement in our financial results," said Albemarle CEO Kent Masters . "We now expect full-year 2022 adjusted EBITDA to be up more than 160% from prior year based on favorable market dynamics for our Lithium and Bromine businesses.  Both businesses are critical for transitioning to greener energy and advancing electrification and digitalization."

 

Full-year 2022 corporate financial results reflect additional index-referenced, variable-price contracts for battery grade lithium sales.  Higher net cash from operations guidance incorporates higher earnings partially offset by increased working capital.  Outlook for the Bromine and Catalysts businesses remains unchanged.

 
 
                            
 
 
 

   Previously Revised   

 

   FY 2022 Guidance   

 
 

   Further Revised   

 

   FY 2022 Guidance   

 
 

  Net sales  

 
 
 

  $5.2 - $5.6 billion  

 
 

  $5.8 - $6.2 billion  

 
 

  Adjusted EBITDA  

 
 
 

  $1.7 - $2.0 billion  

 
 

  $2.2 - $2.5 billion  

 
 

  Adjusted EBITDA Margin  

 
 
 

  33% - 36%  

 
 

  38% - 40%  

 
 

  Adjusted Diluted EPS  

 
 
 

  $9.25 - $12.25  

 
 

  $12.30 - $15.00  

 
 

  Net Cash from Operations  

 
 
 

  $500 - $800 million  

 
 

  $550 - $850 million  

 
 

  Capital Expenditures  

 
 
 

  $1.3 - $1.5 billion  

 
 

  $1.3 - $1.5 billion  

 
 
 

Lithium adjusted EBITDA for the full year 2022 is now expected to grow approximately 300% year over year, up from previous outlook. Average realized pricing is now expected to be up approximately 140% year over year resulting from the implementation of index-referenced, variable-price contracts and increased market pricing. Full-year 2022 volume is expected to be up 20-30% year over year primarily due to new capacity coming online (unchanged from previous outlook).

 

Revised Lithium outlook assumes the company's updated second-quarter 2022 realized selling price remains constant for the remainder of the year. There is potential upside if market pricing remains at historically strong levels or if current fixed contract renegotiations result in additional index-referenced, variable-price contracts. There is potential downside in the event of a material correction in lithium market pricing or potential volume shortfalls (e.g., delays in acquisitions or expansion projects).

 

  Investor Conferences  

 

  Albemarle regularly attends investor relations events as listed on our website. As previously announced, Kent Masters , chief executive officer, and Scott Tozier , chief financial officer, will present at the 2022 Jefferies Renewable Energy Conference in London on May 24, 2022 , at 11:00 am ET .  The presentation materials and webcast will be accessible at the time of the event through the Events and Presentations page on Albemarle's website at https://investors.albemarle.com . A webcast replay will be posted to the company's website immediately following the conclusion of the event.

 

  About Albemarle   

 

 ALBemarle Corporation (NYSE: ALB) is a global specialty chemicals company with leading positions in lithium, bromine and catalysts. We think beyond business as usual to power the potential of companies in many of the world's largest and most critical industries, such as energy, electronics, and transportation. We actively pursue a sustainable approach to managing our diverse global footprint of world-class resources. In conjunction with our highly experienced and talented global teams, our deep-seated values, and our collaborative customer relationships, we create value-added and performance-based solutions that enable a safer and more sustainable future.

 

We regularly post information to www.albemarle.com , including notification of events, news, financial performance, investor presentations and webcasts, non-GAAP reconciliations, SEC filings and other information regarding our company, its businesses, and the markets it serves.

 

  Forward-Looking Statements  

 

Some of the information presented in this press release, the conference call and discussions that follow, including, without limitation, statements with respect to 2022 outlook, information related to the timing of active and proposed projects, production capacity, committed volumes, pricing, financial flexibility, expected growth, anticipated return on opportunities, earnings and demand for its products, productivity improvements, tax rates, stock repurchases, dividends, cash flow generation, costs and cost synergies, capital projects, future acquisition and divestiture transactions including statements with respect to timing, expected benefits from proposed transactions and market and economic trends, and all other information relating to matters that are not historical facts may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from the views expressed. Factors that could cause Albemarle's actual results to differ materially from the outlook expressed or implied in any forward-looking statement include, without limitation: changes in economic and business conditions; changes in financial and operating performance of its major customers and industries and markets served by it; the timing of orders received from customers; the gain or loss of significant customers; market correction in lithium market pricing, which would negatively impact our revenues and profitability due to our increased use of index-referenced, variable-priced contracts for battery grade lithium sales; changes with respect to contract renegotiations; potential production volume shortfalls; competition from other manufacturers; changes in the demand for its products or the end-user markets in which its products are sold; limitations or prohibitions on the manufacture and sale of its products; availability of raw materials; increases in the cost of raw materials and energy, and its ability to pass through such increases to its customers; technological change and development, changes in its markets in general; fluctuations in foreign currencies; changes in laws and government regulation impacting its operations or its products; the occurrence of regulatory actions, proceedings, claims or litigation (including with respect to the U.S. Foreign Corrupt Practices Act and foreign anti-corruption laws); the occurrence of cyber-security breaches, terrorist attacks, industrial accidents or natural disasters, the effect of climate change, including any regulatory changes to which it might be subject; hazards associated with chemicals manufacturing; the inability to maintain current levels of insurance, including product or premises liability insurance, or the denial of such coverage; political unrest affecting the global economy, including adverse effects from terrorism or hostilities; political instability affecting our manufacturing operations or joint ventures; changes in accounting standards; the inability to achieve results from its global manufacturing cost reduction initiatives as well as its ongoing continuous improvement and rationalization programs; changes in the jurisdictional mix of its earnings and changes in tax laws and rates or interpretation; changes in monetary policies, inflation or interest rates that may impact its ability to raise capital or increase its cost of funds, impact the performance of its pension fund investments and increase its pension expense and funding obligations; volatility and uncertainties in the debt and equity markets; technology or intellectual property infringement, including cyber-security breaches, and other innovation risks; decisions it may make in the future; future acquisition and divestiture transactions, including the ability to successfully execute, operate and integrate acquisitions and divestitures and incurring additional indebtedness; continuing uncertainties as to the duration and impact of the coronavirus (COVID-19) pandemic; performance of Albemarle's partners in joint ventures and other projects; changes in credit ratings; and the other factors detailed from time to time in the reports Albemarle files with the SEC, including those described under "Risk Factors" in Albemarle's most recent Annual Report on Form 10-K any subsequently filed Quarterly Reports on Form 10-Q. These forward-looking statements speak only as of the date of this press release. Albemarle assumes no obligation to provide any revisions to any forward-looking statements should circumstances change, except as otherwise required by securities and other applicable laws.

 

  Additional Information  

 

It should be noted that adjusted EBITDA, adjusted EBITDA margin and adjusted diluted earnings per share are financial measures that are not required by, or presented in accordance with, accounting principles generally accepted in the United States , or GAAP. These non-GAAP measures should not be considered as alternatives to Net income attributable to Albemarle Corporation ("earnings") or other comparable measures calculated and reported in accordance with GAAP. These measures are presented here to provide additional useful measurements to review the company's operations, provide transparency to investors and enable period-to-period comparability of financial performance. The company's chief operating decision maker uses these measures to assess the ongoing performance of the company and its segments, as well as for business and enterprise planning purposes.

 

The company does not provide a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP, as the company is unable to estimate significant non-recurring or unusual items without unreasonable effort. The amounts and timing of these items are uncertain and could be material to the company's results calculated in accordance with GAAP.

 
 
 

 Cision View original content to download multimedia: https://www.prnewswire.com/news-releases/albemarle-announces-further-improved-full-year-2022-guidance-301553117.html  

 

SOURCE Albemarle Corporation

 
 

News Provided by PR Newswire via QuoteMedia

ALB
The Conversation (0)
Grid Battery Metals Update - Fall 2024 Drilling Results on its Clayton Valley Lithium Project

Grid Battery Metals Update - Fall 2024 Drilling Results on its Clayton Valley Lithium Project

 

(TheNewswire)

 
     
  Grid Battery Metals Inc.. 
          
 

Coquitlam, BC TheNewswire - January 21, 2025 - Grid Battery Metals Inc. (the "Company" or "Grid") ( TSXV: CELL, OTCQB: EVKRF FRA: W47 ) is pleased to announce the results of its fall 2024 reverse circulation drilling program on the Company's claim block at Silver Peak, Clayton Valley, Esmeralda County, Nevada.  This strategic land package, covering approximately 2,300 acres (930 ha), directly adjoins the western portion of lithium producer Albemarle's (NYSE: ALB) evaporation ponds and is nearby Century Lithium Corp.'s (TSXV: LCE) (OTCQB: CYDVF) proposed 5,430-acre Angel Island Lithium Mine, which recently released a Positive Feasibility Study detailing a 40-year mine life and an after-tax NPV8 of $3.01 billion .

News Provided by TheNewsWire via QuoteMedia

Keep reading...Show less
Grid Battery Metals Drilling Update on its Clayton Valley Lithium Project

Grid Battery Metals Drilling Update on its Clayton Valley Lithium Project

 

(TheNewswire)

 
     
  Grid Battery Metals Inc.. 
          
 

Coquitlam, BC September 26, 2024 TheNewswire Grid Battery Metals Inc. (the "Company" or "Grid") ( TSXV: CELL, OTCQB: EVKRF FRA: W47 ) is pleased to announce that a reverse circulation drilling program is well under way on the Company's claim block at Silver Peak, Clayton Valley, Esmeralda County, Nevada.  This strategic land package, covering approximately 2,300 acres (930 ha), directly adjoins the western portion of lithium producer Albemarle's (NYSE: ALB) evaporation ponds and is nearby Century Lithium Corp.'s (TSXV: LCE) (OTCQB: CYDVF) proposed 5,430-acre Angel Island Lithium Mine.  The Company has completed the drilling of its first hole to a depth of over 870 feet, with the remaining drill holes proposed to a maximum depth of 1500 feet.

News Provided by TheNewsWire via QuoteMedia

Keep reading...Show less
Grid Battery Metals Begins Drilling the Clayton Valley Lithium Project

Grid Battery Metals Begins Drilling the Clayton Valley Lithium Project

 

(TheNewswire)

 
     
  Grid Battery Metals Inc.. 
          
 

Coquitlam, BC TheNewswire - September 12, 2024 - Grid Battery Metals Inc. (the "Company" or "Grid") ( TSXV: CELL, OTCQB: EVKRF FRA: NMK2 ) is pleased to announce that a reverse circulation drilling program is commencing on the Company's claim block at Silver Peak, Clayton Valley, Esmeralda County, Nevada.  This strategic land package, covering approximately 2,300 acres (930 ha), directly adjoins the western portion of lithium producer Albemarle's (NYSE: ALB) evaporation ponds and is nearby Century Lithium Corp.'s (TSXV: LCE) (OTCQB: CYDVF) proposed 5,430-acre Angel Island Lithium Mine.  The Company plans to drill several exploration holes to maximum depths of 1500 ft. in several strategic locations on the property during the month of September.

News Provided by TheNewsWire via QuoteMedia

Keep reading...Show less
Grid Battery Metals Completes Phase 2 of its 2024 Clayton Valley Project 2024 Exploration Plan

Grid Battery Metals Completes Phase 2 of its 2024 Clayton Valley Project 2024 Exploration Plan

 

(TheNewswire)

 
     
  Grid Battery Metals Inc.. 
          
 

Coquitlam, BC TheNewswire - June 20, 2024 - Grid Battery Metals Inc. (the "Company" or "Grid") ( TSXV: CELL, OTCQB: EVKRF FRA: NMK2 ) is pleased to announce the conclusion of a second phase of soil samples and the construction of a geologic model incorporating mapped geology, magnetotelluric (MT) geophysics, and soil geochemistry. Grid's exploration team has determined that a multilayered approach to drill targets would improve the chances of intercepting lithium bearing brines.

News Provided by TheNewsWire via QuoteMedia

Keep reading...Show less
Digital hexagons overlay construction site with an excavator and cloudy sky in the background.

Ekin Ober on Why AI Could Be Mining’s Most Valuable Tool Yet

For Ekin Ober, bringing generative artificial intelligence (AI) to the critical metals sector through her work at Aethos Labs wasn’t just about technological innovation — it reshaped how she thinks about strategy and sustainability in mining.

Now a principal at Kinterra Capital, Ober applies that broad, cross-disciplinary lens to investment decisions, emphasizing the importance of digital fluency, stakeholder alignment and long-term viability.

Her experience helps her identify operational bottlenecks and social license challenges early — essential in guiding assets like nickel and copper projects from concept to production.

Keep reading...Show less
Stacks of US$100 bills with upward-pointing wooden arrows.

Chris Berry: The West Must Invest in Refinement Now or Fall Further Behind

China’s grip on the battery metals sector has drawn increasing scrutiny in recent years as nations confront growing concerns around supply chain risk and resource security.

Through a blend of domestic output and aggressive overseas investment, particularly in Africa and South America, Chinese companies now command a significant share of upstream supply.

The country is responsible for roughly 60 percent of global rare earths production and controls over 70 percent of cobalt supply through its stakes in mines across the Democratic Republic of Congo.

Keep reading...Show less
Magnifying glass focusing on the Albemarle website logo.

Albemarle's Commitment to Sustainability Shines in New Report

As global demand for critical minerals intensifies, Albemarle (NYSE:ALB) continues to position itself as a global leader not only in lithium production but also in sustainable practices.

In its newly released 2024 sustainability report, titled “Values-Led, Purpose-Driven,” the company underscores its commitment to reducing its environmental footprint across six continents, supporting global supply chains and promoting human rights across operations.

From cutting freshwater intensity at its Chilean operations by 28 percent to procuring 24 percent of its electricity from renewable sources, Albemarle is striving to grow its energy storage business while keeping carbon emissions flat, as it translates ESG goals into action.

Keep reading...Show less
Metallic battery with a world map etched on it, against a dark background.

3 Key Themes from Fastmarkets' 2025 Lithium Supply & Battery Raw Materials Event

Market volatility, Chinese control, supply chain risk mitigation and financing emerged as some of the most prevalent themes at the 2025 Fastmarket’s Lithium Supply Battery Raw Materials (LBRM) conference in Las Vegas.

The event, which is in its 17th year, drew a crowd of roughly 1000 delegates, industry experts and analysts, to discuss the current landscape and future projections of the battery materials sector.

During his opening remarks, Fastmarkets CEO Raju Daswani highlighted the growth and maturation the battery raw materials sector has experienced.

Keep reading...Show less
Metals Australia (ASX:MLS)

Metals Australia


Keep reading...Show less

Latest Press Releases

Related News

×