Century Announces Resumption of Normal Shipping Operations at Jamalco Refinery

Rhea-AI Summary

Century Aluminum (CENX) has announced the resumption of normal shipping operations at Jamalco's Rocky Point port following Hurricane Beryl-related repairs. CEO Jesse Gary praised the Jamalco team for their safe and focused execution of the repairs. In Iceland, local geothermal energy companies have issued partial power curtailment orders for maintenance activities, affecting Century's Grundartangi smelter. These curtailments are expected to reduce Grundartangi's production by approximately 2,500 MT in the third quarter.

Positive

• Resumption of normal shipping operations at Jamalco's Rocky Point port
• Successful completion of Hurricane Beryl-related repairs

Negative

• Partial power curtailment at Grundartangi smelter in Iceland
• Expected production reduction of 2,500 MT in Q3 at Grundartangi

Operations Analyst

The resumption of normal shipping operations at Jamalco's Rocky Point port is a positive development for Century Aluminum. This suggests a recovery from hurricane-related disruptions, potentially improving the company's supply chain efficiency and reducing logistical bottlenecks. However, the impact is likely as it represents a return to normal rather than an improvement over pre-hurricane conditions.

On the other hand, the power curtailment at the Grundartangi smelter in Iceland is a negative factor. A reduction of 2,500 MT in Q3 production could have a material impact on the company's financial performance. This represents a ~1% decrease in Century's total annual production capacity, assuming the smelter's typical annual output. Investors should monitor how this might affect the company's Q3 earnings and whether there could be longer-term implications for Century's relationship with Icelandic power suppliers.

Commodities Market Analyst

The news presents a mixed outlook for Century Aluminum's near-term production and market position. The resumption of normal shipping at Jamalco should improve the company's ability to meet customer demand and potentially capitalize on current aluminum market conditions. However, the production cut at Grundartangi could partially offset these gains.

Given the current tight supply in the global aluminum market, even a relatively small production cut of 2,500 MT could have outsized effects on Century's revenue if aluminum prices spike in response to supply constraints. Investors should watch for potential ripple effects in aluminum futures markets and how competitors might adjust their production in response. The situation also highlights Century's vulnerability to geopolitical and environmental factors affecting its diverse production base, which could influence investor perceptions of the company's risk profile.

CHICAGO, Sept. 17, 2024 (GLOBE NEWSWIRE) -- Century Aluminum announced today the resumption of normal shipping operations at Jamalco’s Rocky Point port following the completion of Hurricane Beryl-related repairs to the port.

“I want to thank our entire Jamalco team who rose to the occasion following Hurricane Beryl and successfully completed these repairs safely and with a disciplined focus on execution,” said Century’s President and CEO Jesse Gary.

In Iceland, local geothermal energy companies issued partial power curtailment orders across their industrial customers, including the Company’s Grundartangi smelter, for required maintenance activities. These curtailments are expected to reduce Grundartangi’s production by approximately 2,500 MT in the third quarter.

About Century Aluminum Company

Century Aluminum is an integrated producer of bauxite, alumina, and primary aluminum products. Century is the largest producer of primary aluminum in the United States and also operates production facilities in Iceland, the Netherlands and Jamaica.

Visit www.centuryaluminum.com for more information.

Cautionary Statement

This press release and statements made by Century Aluminum Company and its management contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to the "safe harbor" created by section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements are statements about future events and are based on our current expectations. These forward-looking statements may be identified by the words "believe," "expect," "hope," "target," "anticipate," "intend," "plan," "seek," "estimate," "potential," "project," "scheduled," "forecast" or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," "might," or "may."

Where we express an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, our forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from future results expressed, projected or implied by those forward-looking statements. Important factors that could cause actual results and events to differ from those described in such forward-looking statements can be found in the risk factors and forward-looking statements cautionary language contained in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q and in other filings made with the Securities and Exchange Commission. Although we have attempted to identify those material factors that could cause actual results or events to differ from those described in such forward-looking statements, there may be other factors that could cause actual results or events to differ from those anticipated, estimated or intended. Many of these factors are beyond our ability to control or predict. Given these uncertainties, the reader is cautioned not to place undue reliance on our forward-looking statements. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.

Contact
Ryan Crawford
312-696-3132
Source: Century Aluminum Company

FAQ

What impact did Hurricane Beryl have on Century Aluminum's (CENX) operations?

Hurricane Beryl caused damage to Jamalco's Rocky Point port, requiring repairs that temporarily disrupted shipping operations. Century Aluminum has now completed these repairs and resumed normal shipping operations at the port.

How will the power curtailment in Iceland affect Century Aluminum's (CENX) production?

The partial power curtailment in Iceland is expected to reduce production at Century Aluminum's Grundartangi smelter by approximately 2,500 MT in the third quarter of 2024.

Why are geothermal energy companies in Iceland issuing power curtailment orders affecting Century Aluminum (CENX)?

The geothermal energy companies in Iceland are issuing partial power curtailment orders across their industrial customers, including Century Aluminum's Grundartangi smelter, for required maintenance activities.