Ferroglobe Reports Results for the Third Quarter 2021
Ferroglobe reported Q3 2021 sales of $429.2 million, a 2.5% increase from Q2 2021 and a 63.4% increase year-over-year. Despite this growth, the company faced a significant net loss of ($97.6) million, largely due to a $90.8 million one-time charge from debt extinguishment. Adjusted EBITDA rose to $37.6 million, up 10.3% from Q2 2021. The increase in working capital, driven by heightened demand, amounted to $61.6 million. CEO Marco Levi emphasized strong market conditions and expectations for improved financial performance in 2022.
- Sales increased 2.5% quarter-over-quarter, reaching $429.2 million.
- Adjusted EBITDA rose to $37.6 million, a 10.3% increase from Q2 2021.
- Strong pricing environment across product segments.
- 2022 order book is well-positioned to capitalize on market demand.
- Net loss of ($97.6) million, compared to a profit of $0.7 million in Q2 2021.
- One-time charge of $90.8 million related to debt extinguishment significantly impacted profitability.
- Negative operating cash flow of ($34.7) million due to increased working capital investments.
Sales of
- Q3 2021 sales of
$429.2 million , up2.5% compared to$418.5 million in Q2 2021, and up63.4% compared to$262.7 million in Q3 2020 - Adjusted EBITDA of
$37.6 million , up10.3% compared to$34.1 million in Q2 2021, and up69.1% compared to$22.2 million in Q3 2020 - Net loss of (
$97.6) million , compared to net profit of$0.7 million in Q2 2021, and net loss of ($46.8) million in Q3 2020 Net loss includes a one-time charge of$90.8 million related to the debt extinguishment from the refinancing - Negative operating cash flow of (
$34.7) million driven by an investment in working capital - Pricing environment remains strong across all products; 2022 order book well positioned to capitalize on upside
LONDON, Nov. 16, 2021 (GLOBE NEWSWIRE) -- Ferroglobe PLC (NASDAQ: GSM) (“Ferroglobe”, the “Company”, or the “Parent”), a leading producer globally of silicon metal, silicon-based and manganese-based specialty alloys, today announced results for the third quarter 2021.
Q3 2021 Earnings Highlights
In the third quarter of 2021, Ferroglobe reported net sales of
Ferroglobe reported a net loss of (
At the completion of the comprehensive refinancing, we recognized a charge of
The Company´s reported Q3 EBITDA of
| Quarter Ended | Quarter Ended | Quarter Ended | Nine Months Ended | Nine Months Ended | ||||||||||||||||
| $,000 (unaudited) | September 30, 2021 | June 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | |||||||||||||||
| Sales | $ | 429,210 | $ | 418,538 | $ | 262,673 | $ | 1,209,137 | $ | 823,899 | ||||||||||
| Net profit (loss) | $ | (97,619 | ) | $ | 730 | $ | (46,834 | ) | $ | (165,405 | ) | $ | (109,927 | ) | ||||||
| Diluted EPS | $ | (0.54 | ) | $ | 0.01 | $ | (0.28 | ) | $ | (0.94 | ) | $ | (0.63 | ) | ||||||
| Adjusted net income (loss) attributable to the parent | $ | (64,214 | ) | $ | 2,964 | $ | (9,331 | ) | $ | (79,424 | ) | $ | (58,109 | ) | ||||||
| Adjusted diluted EPS | $ | (0.36 | ) | $ | 0.02 | $ | (0.14 | ) | $ | (0.45 | ) | $ | (0.34 | ) | ||||||
| Adjusted EBITDA | $ | 37,592 | $ | 34,088 | $ | 22,231 | $ | 93,747 | $ | 27,027 | ||||||||||
| Adjusted EBITDA margin | 8.8 | % | 8.1 | % | 8.5 | % | 7.8 | % | 3.3 | % | ||||||||||
Ferroglobe’s Chief Executive Officer, Marco Levi Ph.D, commented, “During the third quarter, we experienced stronger pricing across each of our segments as the market dynamics reflected very strong demand. Somewhat offsetting the strong pricing environment was higher costs, primarily energy as well as lower volumes in our silicon metal and silicon-based alloys segments driven by operational issues at certain facilities and delayed deliveries requested by some customers given the seasonal slowdown during the summer.” Dr. Levi added, “The end markets for each of our segments remain robust into the fourth quarter, resulting in strong momentum as we negotiate contracts for 2022. We expect to end the year on a favorable note, and are taking measures to ensure a step-change in our financial performance next year.”
"Throughout the third quarter, we continued to execute on our strategic plan, finalizing the refinancing and focusing on improving Ferroglobe’s efficiencies company-wide. We have made significant progress, but there is more work to be done as we focus on growing our business and increasing our profitability,” concluded Dr. Levi.
Cash Flow and Balance Sheet
Cash used from operations during Q3 2021 was
Working capital increased by
Net debt was
COVID-19
COVID-19 has been and continues to be a complex and evolving situation, with governments, public institutions and other organizations imposing or recommending, and businesses and individuals implementing, at various times and to varying degrees, restrictions on various activities or other actions to combat its spread, such as restrictions and bans on travel or transportation; limitations on the size of in-person gatherings, restrictions on freight transportations, closures of, or occupancy or other operating limitations on work facilities, and quarantines and lock-downs.
As a result of this pandemic and the strict confinement and other public health measures taken around the world, the demand for our products in the second and third quarters of 2020 was reduced significantly compared with the first and fourth quarters of the year. During the fourth quarter of 2020, demand level for our products increased to levels similar to those prior to the outbreak. In first, second and third quarter of 2021, demand for our products has increased even further than in the fourth quarter of 2020. However, COVID-19 has negatively impacted, and will in the future negatively impact to an extent we are unable to predict, our revenues.
Subsequent events
On October 6, 2021, the Company has entered into an equity distribution agreement (the “Equity Distribution Agreement”) with B. Riley Securities, Inc. and Cantor Fitzgerald & Co. relating to an at-the market offering of the ordinary shares, par value
To date, the Company has sold 186,053 ordinary shares with a net proceeds of
Beatriz García-Cos, Ferroglobe’s Chief Financial Officer, commented, “Ferroglobe is at an interesting inflection point where we see attractive opportunities to position the business for growth going into 2022, on the heels of a strong operating environment. At the same time a number of headwinds, primarily energy prices in Spain and some inflationary pressures in key inputs, is consuming greater than expected cash. As such, this program offers a flexible way to raise capital if/when needed to pursue growth opportunities, but with no obligation to use the program.”
On November 15, 2021 Ferroglobe reached an agreement with the French Government relating to its restructuring process. Under the agreement, Ferroglobe has the support from the government and projects to strengthen its competitiveness across the five manufacturing sites that would continue to operate in France. Specifically, Les Clavaux facility would remain operational with a clear plan to modernize the facility and improve its cost position. This facility would also benefit from a new commercial agreement with a long-standing customer. As planned in the initial project proposed in March 2021, the Château-Feuillet facility would stop production and the calcium silicon production capability would be transferred to Les Clavaux.
Marco Levi, Ferroglobe’s Chief Executive Officer commented, "I would like to acknowledge and thank all the efforts made by the various stakeholders, which have helped reduce the potential social impact in France. This includes the contributions and diligent work of the French government and in particular the Minister of Industry, the Minister of Labor and their respective teams at the national and local levels, the Interministerial Delegate for Restructuring, the Prefects and elected officials, and all Ferroglobe France (FerroPem) employees and social partners. We are collectively encouraged by this outcome and feel confident that the new environment and developments through the process should enable us to strengthen our competitiveness in France.”
Discussion of Third Quarter 2021 Results
The financial results presented for the third quarter are unaudited.
Sales
Sales for Q3 2021 were
| Quarter Ended | Quarter Ended | Quarter Ended | Nine Months Ended | Nine Months Ended | ||||||||||||||||||||
| September 30, 2021 | June 30, 2021 | Change | September 30, 2020 | Change | September 30, 2021 | September 30, 2020 | Change | |||||||||||||||||
| Shipments in metric tons: | ||||||||||||||||||||||||
| Silicon Metal | 61,713 | 67,322 | (8.3 | )% | 51,215 | 20.5 | % | 190,311 | 152,420 | 24.9 | % | |||||||||||||
| Silicon-based Alloys | 55,863 | 65,222 | (14.3 | )% | 42,449 | 31.6 | % | 182,688 | 142,860 | 27.9 | % | |||||||||||||
| Manganese-based Alloys | 76,454 | 68,323 | 11.9 | % | 53,980 | 41.6 | % | 217,386 | 182,995 | 18.8 | % | |||||||||||||
| Total shipments* | 194,030 | 200,867 | (3.4 | )% | 147,644 | 31.4 | % | 590,385 | 478,275 | 23.4 | % | |||||||||||||
| Average selling price ($/MT): | ||||||||||||||||||||||||
| Silicon Metal | $ | 2,467 | $ | 2,347 | 5.1 | % | $ | 2,248 | 9.7 | % | $ | 2,366 | $ | 2,225 | 6.3 | % | ||||||||
| Silicon-based Alloys | $ | 1,992 | $ | 1,830 | 8.9 | % | $ | 1,534 | 29.9 | % | $ | 1,824 | $ | 1,510 | 20.8 | % | ||||||||
| Manganese-based Alloys | $ | 1,574 | $ | 1,414 | 11.3 | % | $ | 1,009 | 56.0 | % | $ | 1,390 | $ | 1,019 | 36.4 | % | ||||||||
| Total* | $ | 1,978 | $ | 1,862 | 6.3 | % | $ | 1,590 | 24.4 | % | $ | 1,839 | $ | 1,550 | 18.6 | % | ||||||||
| Average selling price ($/lb.): | ||||||||||||||||||||||||
| Silicon Metal | $ | 1.12 | $ | 1.06 | 5.1 | % | $ | 1.02 | 9.7 | % | $ | 1.07 | $ | 1.01 | 6.3 | % | ||||||||
| Silicon-based Alloys | $ | 0.90 | $ | 0.83 | 8.9 | % | $ | 0.70 | 29.9 | % | $ | 0.83 | $ | 0.68 | 20.8 | % | ||||||||
| Manganese-based Alloys | $ | 0.71 | $ | 0.64 | 11.3 | % | $ | 0.46 | 56.0 | % | $ | 0.63 | $ | 0.46 | 36.4 | % | ||||||||
| Total* | $ | 0.90 | $ | 0.84 | 6.3 | % | $ | 0.72 | 24.4 | % | $ | 0.83 | $ | 0.70 | 18.6 | % | ||||||||
_________________
* Excludes by-products and other
Sales Prices & Volumes By Product
During Q3 2021, the average selling prices across our product portfolio increased by
Overall sales volumes in Q3 2021 decreased by
Cost of Sales
Cost of sales was
Other Operating Expenses
Other operating expenses in Q3 2021 were
Net Loss Attributable to the Parent
In Q3 2021, net loss attributable to the Parent was (
Adjusted EBITDA
In Q3 2021, adjusted EBITDA was
Net finance expenses
Net finance expense amounted to
For accounting purposes the refinancing of the Senior Notes have been considered a debt extinguishment. As a consequence;
| (i) | The accounting rules do not allow to capitalize the fees incurred in the exchange of the notes, amounting |
| (ii) | Similarly to the transaction fees, the shares paid to bondholders and underwriters cannot be capitalized and has to be considered as a one-off expense, amounting |
| (iii) | In the case of an extinguishment any outstanding upfront fees that were capitalized at the issuance of the original notes needs to be recycled in to P&L, this amounted |
The transaction fees incurred in the issuance of the Super Senior has been capitalized as required by the accounting rules.
Conference Call
Ferroglobe management will review the third quarter during a conference call at 08:30 a.m. U.S Eastern Standard Time on November 17, 2021.
The dial-in number for participants in the United States is + 1 877-870-9135 (conference ID: 3867903). International callers should dial + 44 (0)-2071-928338 (conference ID: 3867903). Please dial in at least five minutes prior to the call to register. The call may also be accessed via an audio webcast available at https://edge.media-server.com/mmc/p/8ep3x3fm
About Ferroglobe
Ferroglobe is one of the world’s leading suppliers of silicon metal, silicon-based and manganese-based specialty alloys and ferroalloys, serving a customer base across the globe in dynamic and fast-growing end markets, such as solar, automotive, consumer products, construction and energy. The Company is based in London. For more information, visit http://investor.ferroglobe.com.
Forward-Looking Statements
This release contains “forward-looking statements” within the meaning of U.S. securities laws. Forward-looking statements are not historical facts but are based on certain assumptions of management and describe the Company’s future plans, strategies and expectations. Forward-looking statements often use forward-looking terminology, including words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “forecast”, “guidance”, “intends”, “likely”, “may”, “plan”, “potential”, “predicts”, “seek”, “target”, “will” and words of similar meaning or the negative thereof.
Forward-looking statements contained in this press release are based on information currently available to the Company and assumptions that management believe to be reasonable, but are inherently uncertain. As a result, Ferroglobe’s actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements, which are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company’s control.
Forward-looking financial information and other metrics presented herein represent the Company’s goals and are not intended as guidance or projections for the periods referenced herein or any future periods.
All information in this press release is as of the date of its release. Ferroglobe does not undertake any obligation to update publicly any of the forward-looking statements contained herein to reflect new information, events or circumstances arising after the date of this press release. You should not place undue reliance on any forward-looking statements, which are made only as of the date of this press release.
Non-IFRS Measures
Adjusted EBITDA, adjusted EBITDA margin, adjusted net profit, adjusted profit per share, working capital and net debt, are non-IFRS financial metrics that, we believe, are pertinent measures of Ferroglobe’s success. Ferroglobe has included these financial metrics to provide supplemental measures of its performance. The Company believes these metrics are important because they eliminate items that have less bearing on the Company’s current and future operating performance and highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures.
INVESTOR CONTACT:
Gaurav Mehta
Executive Vice President – Investor Relations
Email: investor.relations@ferroglobe.com
MEDIA CONTACT:
Cristina Feliu Roig
Executive Director – Communications & Public Affairs
Email: corporate.comms@ferroglobe.com
| Ferroglobe PLC and Subsidiaries Unaudited Condensed Consolidated Income Statement (in thousands of U.S. dollars, except per share amounts) | ||||||||||||||||||||
| Quarter Ended | Quarter Ended | Quarter Ended | Nine Months Ended | Nine Months Ended | ||||||||||||||||
| September 30, 2021 | June 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||||||||||||
| Sales | $ | 429,210 | $ | 418,538 | $ | 262,673 | $ | 1,209,137 | $ | 823,899 | ||||||||||
| Cost of sales | (295,273 | ) | (267,939 | ) | (166,231 | ) | (813,377 | ) | (562,882 | ) | ||||||||||
| Other operating income | 31,447 | 37,105 | 7,598 | 70,466 | 25,526 | |||||||||||||||
| Staff costs | (50,386 | ) | (63,197 | ) | (56,329 | ) | (208,849 | ) | (160,338 | ) | ||||||||||
| Other operating expense | (79,785 | ) | (93,171 | ) | (26,896 | ) | (209,793 | ) | (102,915 | ) | ||||||||||
| Depreciation and amortization charges, operating allowances and write-downs | (23,971 | ) | (23,523 | ) | (26,524 | ) | (72,779 | ) | (82,651 | ) | ||||||||||
| Impairment losses | (363 | ) | — | (34,269 | ) | (363 | ) | (34,269 | ) | |||||||||||
| Other (loss) gain | 381 | 608 | 1,212 | 1,056 | 625 | |||||||||||||||
| Operating profit (loss) | 11,260 | 8,421 | (38,766 | ) | (24,502 | ) | (93,005 | ) | ||||||||||||
| Net finance expense | (103,379 | ) | (11,178 | ) | (13,985 | ) | (130,420 | ) | (47,162 | ) | ||||||||||
| Financial derivatives gain | — | — | — | — | 3,168 | |||||||||||||||
| Exchange differences | (6,180 | ) | 3,237 | 13,158 | (12,257 | ) | 18,226 | |||||||||||||
| Profit (loss) before tax | (98,299 | ) | 480 | (39,594 | ) | (167,179 | ) | (118,773 | ) | |||||||||||
| Income tax benefit | 680 | 250 | (1,841 | ) | 1,774 | 14,245 | ||||||||||||||
| (Loss) profit for the period from continuing operations | (97,619 | ) | 730 | (41,435 | ) | (165,405 | ) | (104,528 | ) | |||||||||||
| Profit for the period from discontinued operations | — | — | (5,399 | ) | — | (5,399 | ) | |||||||||||||
| Profit (loss) for the period | (97,619 | ) | 730 | (46,834 | ) | (165,405 | ) | (109,927 | ) | |||||||||||
| Profit attributable to non-controlling interest | 1,023 | 1,180 | (450 | ) | 3,338 | 2,638 | ||||||||||||||
| Profit (loss) attributable to the parent | $ | (96,596 | ) | $ | 1,910 | $ | (47,284 | ) | $ | (162,067 | ) | $ | (107,289 | ) | ||||||
| EBITDA | $ | 35,231 | $ | 31,944 | $ | (12,243 | ) | $ | 48,277 | $ | (10,354 | ) | ||||||||
| Adjusted EBITDA | $ | 37,592 | $ | 34,088 | $ | 22,231 | $ | 93,747 | $ | 27,027 | ||||||||||
| Weighted average shares outstanding | ||||||||||||||||||||
| Basic | 179,849 | 169,298 | 169,261 | 172,852 | 169,261 | |||||||||||||||
| Diluted | 179,849 | 169,298 | 169,261 | 172,852 | 169,261 | |||||||||||||||
| Profit (loss) per ordinary share | ||||||||||||||||||||
| Basic | $ | (0.54 | ) | $ | 0.01 | $ | (0.28 | ) | $ | (0.94 | ) | $ | (0.63 | ) | ||||||
| Diluted | $ | (0.54 | ) | $ | 0.01 | $ | (0.28 | ) | $ | (0.94 | ) | $ | (0.63 | ) | ||||||
| Ferroglobe PLC and Subsidiaries Unaudited Condensed Consolidated Statement of Financial Position (in thousands of U.S. dollars) | |||||||||
| September 30, | June 30, | December 31 | |||||||
| 2021 | 2021 | 2020 | |||||||
| ASSETS | |||||||||
| Non-current assets | |||||||||
| Goodwill | $ | 29,702 | $ | 29,702 | $ | 29,702 | |||
| Other intangible assets | 89,698 | 87,556 | 20,756 | ||||||
| Property, plant and equipment | 567,876 | 587,602 | 620,034 | ||||||
| Other non-current financial assets | 5,198 | 5,329 | 5,057 | ||||||
| Deferred tax assets | 150 | 62 | — | ||||||
| Non-current receivables from related parties | 2,316 | 2,377 | 2,454 | ||||||
| Other non-current assets | 17,916 | 13,960 | 11,904 | ||||||
| Total non-current assets | 712,856 | 726,588 | 689,907 | ||||||
| Current assets | |||||||||
| Inventories | 284,488 | 239,750 | 246,549 | ||||||
| Trade and other receivables | 305,453 | 283,990 | 242,262 | ||||||
| Current receivables from related parties | 3,025 | 3,105 | 3,076 | ||||||
| Current income tax assets | 8,195 | 8,826 | 12,072 | ||||||
| Other current financial assets | 903 | 1,003 | 1,008 | ||||||
| Other current assets | 10,352 | 57,219 | 20,714 | ||||||
| Current restricted cash and cash equivalents | 5,996 | 6,149 | 28,843 | ||||||
| Cash and cash equivalents | 89,047 | 99,940 | 102,714 | ||||||
| Total current assets | 707,459 | 699,982 | 657,238 | ||||||
| Total assets | $ | 1,420,315 | $ | 1,426,570 | $ | 1,347,145 | |||
| EQUITY AND LIABILITIES | |||||||||
| Equity | $ | 281,910 | $ | 299,469 | $ | 365,719 | |||
| Non-current liabilities | |||||||||
| Deferred income | 16,275 | 37,570 | 620 | ||||||
| Provisions | 98,607 | 107,501 | 108,487 | ||||||
| Bank borrowings | 3,998 | 4,061 | 5,277 | ||||||
| Lease liabilities | 11,199 | 12,995 | 13,994 | ||||||
| Debt instruments | 405,171 | 37,600 | 346,620 | ||||||
| Other financial liabilities | 37,630 | 37,608 | 29,094 | ||||||
| Other non-current liabilities | 13,035 | 16,955 | 16,767 | ||||||
| Deferred tax liabilities | 22,868 | 23,956 | 27,781 | ||||||
| Total non-current liabilities | 608,783 | 278,246 | 548,640 | ||||||
| Current liabilities | |||||||||
| Provisions | 109,552 | 102,269 | 55,296 | ||||||
| Bank borrowings | 86,262 | 85,825 | 102,330 | ||||||
| Lease liabilities | 9,255 | 8,709 | 8,542 | ||||||
| Debt instruments | 25,822 | 359,318 | 10,888 | ||||||
| Other financial liabilities | 24,155 | 23,732 | 34,802 | ||||||
| Payables to related parties | 9,079 | 6,131 | 3,196 | ||||||
| Trade and other payables | 194,074 | 189,449 | 149,201 | ||||||
| Current income tax liabilities | 1,464 | 513 | 2,538 | ||||||
| Other current liabilities | 69,959 | 72,909 | 65,993 | ||||||
| Total current liabilities | 529,622 | 848,855 | 432,786 | ||||||
| Total equity and liabilities | $ | 1,420,315 | $ | 1,426,570 | $ | 1,347,145 | |||
| Ferroglobe PLC and Subsidiaries Unaudited Condensed Consolidated Statement of Cash Flows (in thousands of U.S. dollars) | ||||||||||||||||||||
| Quarter Ended | Quarter Ended | Quarter Ended | Nine Months Ended | Nine Months Ended | ||||||||||||||||
| September 30, 2021 | June 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||||||||||||
| Cash flows from operating activities: | ||||||||||||||||||||
| Profit (loss) for the period | $ | (97,619 | ) | $ | 730 | $ | (46,834 | ) | $ | (165,405 | ) | $ | (109,927 | ) | ||||||
| Adjustments to reconcile net (loss) profit to net cash used by operating activities: | ||||||||||||||||||||
| Income tax (benefit) expense | (680 | ) | (250 | ) | 1,841 | (1,774 | ) | (14,245 | ) | |||||||||||
| Depreciation and amortization charges, operating allowances and write-downs | 23,971 | 23,523 | 26,524 | 72,779 | 82,651 | |||||||||||||||
| Net finance expense | 103,379 | 11,178 | 13,985 | 130,420 | 47,162 | |||||||||||||||
| Financial derivatives loss (gain) | — | — | — | — | (3,168 | ) | ||||||||||||||
| Exchange differences | 6,180 | (3,237 | ) | (13,158 | ) | 12,257 | (18,226 | ) | ||||||||||||
| Impairment losses | 363 | — | 34,269 | 363 | 34,269 | |||||||||||||||
| Net loss (gain) due to changes in the value of asset | (424 | ) | (243 | ) | — | (688 | ) | — | ||||||||||||
| Bargain purchase gain | — | — | — | — | — | |||||||||||||||
| Gain on disposal of discontinued operation | — | — | 5,399 | — | 5,399 | |||||||||||||||
| Gain on disposal of non-current assets | — | — | — | (351 | ) | — | ||||||||||||||
| Share-based compensation | 1,269 | 673 | 323 | 2,163 | 1,749 | |||||||||||||||
| Other adjustments | 43 | (366 | ) | (8,774 | ) | (17 | ) | (8,188 | ) | |||||||||||
| Changes in operating assets and liabilities | — | — | ||||||||||||||||||
| (Increase) decrease in inventories | (51,835 | ) | (8,770 | ) | 3,725 | (49,159 | ) | 42,831 | ||||||||||||
| (Increase) decrease in trade receivables | (27,683 | ) | (8,625 | ) | (4,731 | ) | (78,000 | ) | 124,638 | |||||||||||
| Increase (decrease) in trade payables | 9,138 | 16,184 | (20,359 | ) | 51,474 | (50,738 | ) | |||||||||||||
| Other | (1,138 | ) | (32,783 | ) | 31,411 | 3,764 | 3,526 | |||||||||||||
| Income taxes paid | 359 | (1,178 | ) | (633 | ) | (876 | ) | 13,008 | ||||||||||||
| Interest paid | — | — | — | — | — | |||||||||||||||
| Net cash provided (used) by operating activities | (34,677 | ) | (3,164 | ) | 22,988 | (23,050 | ) | 150,741 | ||||||||||||
| Cash flows from investing activities: | ||||||||||||||||||||
| Interest and finance income received | 21 | 128 | 278 | 184 | 617 | |||||||||||||||
| Payments due to investments: | - | |||||||||||||||||||
| Acquisition of subsidiary | — | — | — | — | — | |||||||||||||||
| Other intangible assets | — | — | — | — | — | |||||||||||||||
| Property, plant and equipment | (8,189 | ) | (3,245 | ) | (8,734 | ) | (17,117 | ) | (18,396 | ) | ||||||||||
| Other | — | — | — | — | — | |||||||||||||||
| Disposals: | — | — | ||||||||||||||||||
| Disposal of subsidiaries | — | — | — | — | — | |||||||||||||||
| Other non-current assets | — | 543 | 46 | 543 | 46 | |||||||||||||||
| Other | — | — | — | — | — | |||||||||||||||
| Net cash (used) provided by investing activities | (8,168 | ) | (2,574 | ) | (8,410 | ) | (16,390 | ) | (17,733 | ) | ||||||||||
| Cash flows from financing activities: | ||||||||||||||||||||
| Dividends paid | — | — | — | — | — | |||||||||||||||
| Payment for debt and equity issuance costs | (26,064 | ) | (11,093 | ) | (608 | ) | (43,755 | ) | (2,463 | ) | ||||||||||
| Proceeds from equity issuance | 40,000 | — | — | 40,000 | — | |||||||||||||||
| Proceeds from debt issuance | 20,000 | 40,000 | 60,000 | |||||||||||||||||
| Increase/(decrease) in bank borrowings: | — | — | ||||||||||||||||||
| Borrowings | 159,861 | 149,945 | 8,022 | 437,496 | 8,022 | |||||||||||||||
| Payments | (158,118 | ) | (144,983 | ) | (7,800 | ) | (460,565 | ) | (73,360 | ) | ||||||||||
| Proceeds from stock option exercises | — | — | — | — | — | |||||||||||||||
| Amounts paid due to leases | (2,602 | ) | (3,157 | ) | (2,463 | ) | (8,615 | ) | (7,342 | ) | ||||||||||
| Other amounts received/(paid) due to financing activities | — | — | — | — | 3,608 | |||||||||||||||
| Payments to acquire or redeem own shares | — | — | — | — | — | |||||||||||||||
| Interest paid | (1,125 | ) | (3,333 | ) | (17,130 | ) | (21,473 | ) | (37,085 | ) | ||||||||||
| Net cash (used) provided by financing activities | 31,952 | 27,379 | (19,979 | ) | 3,088 | (108,620 | ) | |||||||||||||
| Total net cash flows for the period | (10,893 | ) | 21,641 | (5,401 | ) | (36,352 | ) | 24,388 | ||||||||||||
| Beginning balance of cash and cash equivalents | 106,089 | 84,367 | 153,242 | 131,557 | 123,175 | |||||||||||||||
| Exchange differences on cash and cash equivalents in foreign currencies | (153 | ) | 81 | (416 | ) | (162 | ) | (138 | ) | |||||||||||
| Ending balance of cash and cash equivalents | $ | 95,043 | $ | 106,089 | $ | 147,425 | $ | 95,043 | $ | 147,425 | ||||||||||
| Cash from continuing operations | 89,047 | 99,940 | 118,874 | 89,047 | 118,874 | |||||||||||||||
| Current/Non-current restricted cash and cash equivalents | 5,996 | 6,149 | 28,551 | 5,996 | 28,551 | |||||||||||||||
| Cash and restricted cash in the statement of financial position | $ | 95,043 | $ | 106,089 | $ | 147,425 | $ | 95,043 | $ | 147,425 | ||||||||||
| Adjusted EBITDA ($,000): | ||||||||||||||||||||
| Quarter Ended | Quarter Ended | Quarter Ended | Nine Months Ended | Nine Months Ended | ||||||||||||||||
| September 30, 2021 | June 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||||||||||||
| Profit (loss) attributable to the parent | $ | (96,596 | ) | $ | 1,910 | $ | (47,284 | ) | $ | (162,067 | ) | $ | (107,289 | ) | ||||||
| Profit (loss) for the period from discontinued operations | — | — | 5,399 | — | 5,399 | |||||||||||||||
| Profit (loss) attributable to non-controlling interest | (1,023 | ) | (1,180 | ) | 450 | (3,338 | ) | (2,638 | ) | |||||||||||
| Income tax (benefit) expense | (680 | ) | (250 | ) | 1,841 | (1,774 | ) | (14,245 | ) | |||||||||||
| Net finance expense | 103,379 | 11,178 | 13,985 | 130,420 | 47,162 | |||||||||||||||
| Financial derivatives loss (gain) | — | — | — | — | (3,168 | ) | ||||||||||||||
| Exchange differences | 6,180 | (3,237 | ) | (13,158 | ) | 12,257 | (18,226 | ) | ||||||||||||
| Depreciation and amortization charges, operating allowances and write-downs | 23,971 | 23,523 | 26,524 | 72,779 | 82,651 | |||||||||||||||
| EBITDA | 35,231 | 31,944 | (12,243 | ) | 48,277 | (10,354 | ) | |||||||||||||
| Impairment | 363 | — | 34,269 | 363 | 34,269 | |||||||||||||||
| Restructuring and termination costs | 1,313 | 2,144 | — | 44,422 | — | |||||||||||||||
| Energy: France | — | — | — | — | 70 | |||||||||||||||
| Staff Costs: South Africa | — | — | — | — | 155 | |||||||||||||||
| Other Idling Costs | — | — | 205 | — | 2,887 | |||||||||||||||
| Pension Plan buyout | 685 | — | — | 685 | ||||||||||||||||
| Adjusted EBITDA | $ | 37,592 | $ | 34,088 | $ | 22,231 | $ | 93,747 | $ | 27,027 | ||||||||||
| Adjusted profit attributable to Ferroglobe ($,000): | ||||||||||||||||||||
| Quarter Ended | Quarter Ended | Quarter Ended | Nine Months Ended | Nine Months Ended | ||||||||||||||||
| September 30, 2021 | June 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||||||||||||
| Profit (loss) attributable to the parent | $ | (96,596 | ) | $ | 1,910 | $ | (47,284 | ) | $ | (162,067 | ) | $ | (107,289 | ) | ||||||
| Tax rate adjustment | 30,776 | (404 | ) | 14,511 | 51,723 | 23,761 | ||||||||||||||
| Impairment | 247 | — | 23,303 | 247 | 23,303 | |||||||||||||||
| Restructuring and termination costs | 893 | 1,458 | — | 30,207 | — | |||||||||||||||
| Energy: France | — | — | — | — | 48 | |||||||||||||||
| Energy: South Africa | — | — | — | — | — | |||||||||||||||
| Staff Costs: South Africa | — | — | — | — | 105 | |||||||||||||||
| Other Idling Costs | — | — | 139 | — | 1,963 | |||||||||||||||
| Tolling agreement | — | — | — | — | — | |||||||||||||||
| Bargain purchase gain | — | — | — | — | — | |||||||||||||||
| Gain on sale of hydro plant assets | — | — | — | — | — | |||||||||||||||
| Share-based compensation | — | — | — | — | — | |||||||||||||||
| Pension Plan buyout | 466 | 466 | ||||||||||||||||||
| Adjusted profit (loss) attributable to the parent | $ | (64,214 | ) | $ | 2,964 | $ | (9,331 | ) | $ | (79,424 | ) | $ | (58,109 | ) | ||||||
| Adjusted diluted profit per share: | ||||||||||||||||||||
| Quarter Ended | Quarter Ended | Quarter Ended | Nine Months Ended | Nine Months Ended | ||||||||||||||||
| September 30, 2021 | June 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||||||||||||
| Diluted profit (loss) per ordinary share | $ | (0.54 | ) | $ | 0.01 | $ | (0.28 | ) | $ | (0.94 | ) | $ | (0.63 | ) | ||||||
| Tax rate adjustment | 0.18 | (0.00 | ) | (0.00 | ) | 0.31 | 0.14 | |||||||||||||
| Impairment | 0.00 | — | 0.14 | 0.00 | 0.14 | |||||||||||||||
| Restructuring and termination costs | 0.00 | 0.01 | — | 0.18 | — | |||||||||||||||
| Energy: France | — | — | — | — | 0.00 | |||||||||||||||
| Staff Costs: South Africa | — | — | — | — | 0.00 | |||||||||||||||
| Other Idling Costs | — | — | 0.00 | — | 0.01 | |||||||||||||||
| Restructuring and termination costs | — | — | — | — | — | |||||||||||||||
| Tolling agreement | — | — | — | — | — | |||||||||||||||
| Bargain purchase gain | — | — | — | — | — | |||||||||||||||
| Gain on sale of hydro plant assets | — | — | — | — | — | |||||||||||||||
| Share-based compensation | — | — | — | — | — | |||||||||||||||
| Pension Plan buyout | 0.00 | — | — | 0.00 | — | |||||||||||||||
| Adjusted diluted profit (loss) per ordinary share | $ | (0.36 | ) | $ | 0.02 | $ | (0.14 | ) | $ | (0.45 | ) | $ | (0.34 | ) | ||||||
FAQ
What were Ferroglobe's Q3 2021 sales figures?
How did Ferroglobe's net loss in Q3 2021 compare to previous quarters?
What was Ferroglobe's adjusted EBITDA for Q3 2021?
How is Ferroglobe positioned for future growth?
What caused Ferroglobe's significant net loss in Q3 2021?
