Ferroglobe Reports Strong Second Quarter 2023 Financial Results

Rhea-AI Summary

Ferroglobe PLC announces Q2-23 financial results with revenue of $456.4 million, up 14% from the prior quarter. Adjusted EBITDA increased by 136% to $105.7 million. Gross debt remains flat at $400.1 million, while net debt declined to $37 million. Total cash increased to $363 million. The US adding Silicon Metal as a critical material highlights its importance in the supply chain and onshoring opportunity for Ferroglobe.

Positive

• Ferroglobe reports strong Q2-23 financial results with revenue up 14% and adjusted EBITDA up 136%. Gross debt remains flat while net debt declines. Total cash increases to $363 million. The US adding Silicon Metal as a critical material presents an onshoring opportunity for Ferroglobe.

Negative

• None.

LONDON, Aug. 14, 2023 (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 financial results for the second quarter 2023.

FINANCIAL HIGHLIGHTS

• Reported Q2-23 revenue of $456.4 million, up 14% over the prior quarter
• Q2-23 adjusted EBITDA of $105.7 million, up 136% over the prior quarter
• Improved Q2-23 adjusted EBITDA margin to 23.2% versus 11.2% in Q1-23
• Q2-23 Adjusted EPS was $0.30 versus $0.05 in Q1-23
• Gross debt was $400.1 million in Q2-23, flat versus the prior quarter and down $100 million from a year-ago quarter
• Net debt declined to $37 million, down from $55 million in Q1-23 and $194 million in Q2-22
• $100 million available from our ABL facility completely undrawn in Q2-23
• Total cash increased to $363 million, up from $344 million in Q1-23 and $307 million in Q2-22
  
  

BUSINESS HIGHLIGHTS        

• Executed a partial redemption of the 2025 Senior Notes on July 31, redeeming $150 million of the 9 3/8% Senior Secured Notes due in 2025, reducing annual interest expense by $14 million
• Approaching net cash neutral - Lowest net debt in Company history
• Continued improvement to balance sheet with cash increasing to $363 million and net debt declining to $37 million
• The US recently added Silicon Metal as a critical material, highlighting its importance in the supply chain and reinforcing the onshoring opportunity for Ferroglobe  
• Well-positioned to capitalize on strong long-term growth trends for high purity silicon metal used in the production of solar technology and batteries
• Finalized our first long-term power agreement in Spain, enabling a partial resumption of Spanish operations while increasing renewable energy sourcing
  
  

Dr. Marco Levi, Ferroglobe’s Chief Executive Officer, commented, “We are pleased to report strong second quarter sales growth and an EBITDA improvement of 136%, highlighting our resilience and ability to navigate effectively through this volatile pricing environment as our end markets remain under pressure. Equally importantly, our focus on strengthening our balance sheet has been effective as our cash and net debt positions reached their best levels in the Company’s history as of June 30. Subsequent to quarter-end, we continued our deleveraging efforts by redeeming $150 million of our Senior Secured Notes due in 2025.

“Recently, the US Department of Energy added Silicon Metal to its critical material list. This is a significant step, validating the onshoring trend and highlighting our opportunity in the US market.

“As expected, we finalized our first multi-year energy contract in Spain starting in 2024. This is an initial step in the process to sign additional contracts to further hedge our future energy needs. This contract provides us with access to 100% renewable energy at competitive rates and enables Ferroglobe to increase production in Spain.

“While end markets remain soft, our proactive energy strategy, combined with disciplined costs controls, is bolstering our performance in 2023. Hence, we are reiterating our guidance for the full year of adjusted EBITDA of $270 to $300 million,” concluded Dr. Levi.

Second Quarter 2023 Financial Highlights

	Quarter Ended				Quarter Ended				Quarter Ended				%		%		Six Months Ended				Six Months Ended				%
$,000 (unaudited)	June 30, 2023				March 31, 2023				June 30, 2022				Q/Q		Y/Y		June 30, 2023				June 30, 2022				Y/Y
Sales	$	456,441			$	400,868			$	840,808			14%		(46%)		$	857,309			$	1,556,073			(45%)
Raw materials and energy consumption for production	$	(229,077	)		$	(255,036	)		$	(369,749	)		9%		(32%)		$	(484,113	)		$	(710,304	)		(32%)
Energy consumption for production (PPA impact)		(23,193	)			23,193				—								—				—
Operating profit (loss)	$	62,846			$	44,454			$	265,298			41%		(76%)		$	107,300			$	476,428			(77%)
Operating margin		13.8	%			11.1	%			31.6	%							12.5	%			30.6	%
Adjusted net income attributable to the parent	$	56,737			$	7,807			$	213,170			627%		(73%)		$	64,922			$	378,472			(83%)
Adjusted diluted EPS	$	0.30			$	0.05			$	1.14							$	0.34			$	2.02
Adjusted EBITDA	$	105,674			$	44,767			$	303,159			136%		(65%)		$	150,441			$	544,277			(72%)
Adjusted EBITDA margin		23.2	%			11.2	%			36.1	%							17.5	%			35.0	%
Operating cash flow	$	23,572			$	134,783			$	164,818			(83%)		(86%)		$	158,355			$	230,726			(31%)
Free cash flow1	$	939			$	117,491			$	151,109			(99%)		(99%)		$	118,430			$	207,892			(43%)
Working Capital	$	474,971			$	582,344			$	687,345			(18%)		(31%)		$	474,971			$	687,345			(31%)
Cash and Restricted Cash	$	363,181			$	344,197			$	306,511			6%		18%		$	363,181			$	306,511			18%
Adjusted Gross Debt2	$	400,066			$	399,723			$	500,472			0%		(20%)		$	400,066			$	500,472			(20%)
Equity	$	823,595			$	658,490			$	637,710			25%		29%		$	823,595			$	637,710			29%

(1)  Free cash flow is calculated as operating cash flow plus investing cash flow
(2)  Adjusted gross debt excludes bank borrowings on factoring program and impact of leasing standard IFRS16 at June 30, 2023 March 31, 2023 & June 30, 2022

Sales

Ferroglobe reported second quarter net sales of $456 million, an increase of 14% over the prior quarter and a decrease of 46% over Q2-22. The improvement over our prior quarter revenue is primarily attributable to higher volumes in our main products. The $56 million increase in sales over the prior quarter was primarily driven by silicon metal, which accounted for $35 million of the increase, and manganese-based alloys, which accounted for $16 million, partially offset by a decrease in silicon-based alloys, which accounted for $2 million.

Raw materials and energy consumption for production

Raw materials and energy consumption for production was $252 million in the second quarter of 2023 versus $232 million in the prior quarter, an increase of 9%. As a percentage of sales, raw materials and energy consumption for production was 55% in the second quarter of 2023 versus 58% in the prior quarter. Excluding the PPA impact, raw materials and energy consumption for production was 50% of revenue in the second quarter, an improvement from 64% in the first quarter.

Net Income (Loss) Attributable to the Parent

In the second quarter, net profit attributable to the parent was $32 million, or $0.17 per diluted share, compared to a net profit attributable to the parent of $21 million, or $0.11 per diluted share in the first quarter.

Adjusted EBITDA

Adjusted EBITDA in the second quarter was $106 million, an increase of 136% over first quarter adjusted EBITDA of $45 million. Adjusted EBITDA margins were 23% in the second quarter, up from 11% in the first quarter. The increase in second quarter adjusted EBITDA was driven by higher sales volumes and lower costs, which benefited from energy and CO2 compensation.

Total Cash

The total cash balance was $363 million as of June 30, 2023, up $19 million from $344 million as of March 31, 2023.

During the second quarter, we generated positive operating cash flow of $24 million, negative cash flow from investing activities of $23 million, and $19 million positive cash flow from financing activities.

Total Working Capital

Total working capital was $475 million at June 30, 2023, a decrease from $582 million at March 31, 2023. The $107 million decrease in working capital during the quarter was due to a decrease in trade and other receivables by $31 million, a decrease in inventories by $33 million, and an increase in trade and other payables by $44 million.

Beatriz García-Cos, Ferroglobe’s Chief Financial Officer, commented, “We continued to manage our working capital effectively during the quarter, reducing it by $107 million to $475 million with trade receivables, inventories and accounts payable all contributing. During the second quarter, we improved our net debt by $18 million to $37 million.

“In July, we further strengthened our balance sheet by redeeming $150 million of our 9 3/8% Senior Secured Notes, effectively reducing the outstanding note balance by half and lowering our annual interest expense by approximately $14 million. In less than 18 months, we have reduced gross debt by $270 million, from roughly $520 million to $250 million today, highlighting our strong cash flow generation.

“We are currently evaluating our next steps in managing our balance sheet as we contemplate optimal actions to maximize long-term shareholder value,” concluded Mrs. Garcia-Cos.        

Product Category Highlights

Silicon Metal

	Quarter Ended				Quarter Ended							Quarter Ended							Six Months Ended				Six Months Ended
	June 30, 2023				March 31, 2023				% Q/Q			June 30, 2022				% Y/Y			June 30, 2023				June 30, 2022				% Y/Y
Shipments in metric tons:		50,651				36,942			37.1	%			62,988			(19.6	)%			87,593				119,337			(26.6	)%
Average selling price ($/MT):		3,855				4,351			(11.4	)%			5,649			(31.8	)%			4,064				5,603			(27.5	)%
Silicon Metal Revenue ($,000)		195,260				160,735			21.5	%			355,819			(45.1	)%			355,995				668,669			(46.8	)%
Silicon Metal Adj.EBITDA ($,000)		82,403				31,120			164.8	%			175,108			(52.9	)%			113,523				326,769			(65.3	)%
Silicon Metal Adj.EBITDA Mgns		42.2	%			19.4	%						49.2	%						31.9	%			48.9	%

Silicon metal revenue in the second quarter was $195 million, an increase of 21.5% over the prior quarter. The average realized price was down 11.4%, driven by lower market index pricing in the US and Europe. Total shipments increased due to the restart of our French operations as a result of our energy agreement. Adjusted EBITDA for silicon metal increased to $82 million during the second quarter, an increase of 164.8% compared with $31 million for the prior quarter. EBITDA margin in the quarter increased mainly driven by higher energy compensation and lower raw materials prices, primarily coal.

Silicon-Based Alloys

	Quarter Ended				Quarter Ended							Quarter Ended							Six Months Ended				Six Months Ended
	June 30, 2023				March 31, 2023				% Q/Q			June 30, 2022				% Y/Y			June 30, 2023				June 30, 2022				% Y/Y
Shipments in metric tons:		49,457				49,100			0.7	%			57,658			(14.2	)%			98,557				115,252			(14.5	)%
Average selling price ($/MT):		2,697				2,756			(2.1	)%			4,097			(34.2	)%			2,726				3,889			(29.9	)%
Silicon-based Alloys Revenue ($,000)		133,386				135,320			(1.4	)%			236,225			(43.5	)%			268,706				448,171			(40.0	)%
Silicon-based Alloys Adj.EBITDA ($,000)		31,812				21,924			45.1	%			97,141			(67.3	)%			53,736				175,552			(69.4	)%
Silicon-based Alloys Adj.EBITDA Mgns		23.8	%			16.2	%						41.1	%						20.0	%			39.2	%

Silicon-based alloy revenue in the second quarter was $133 million, a decrease of 1.4% over the prior quarter. Shipments remained broadly stable versus the prior quarter, while average realized selling prices slightly declined by 2.1% versus the previous quarter due to downward market prices partially offset by product mix improvement. Adjusted EBITDA for the silicon-based alloys portfolio increased to $32 million in the second quarter of 2023, an increase of 45.1% compared with $22 million for the prior quarter. EBITDA margin increased in the quarter as a result of footprint optimization, shifting production to France with lower energy costs.

Manganese-Based Alloys

	Quarter Ended				Quarter Ended							Quarter Ended							Six Months Ended				Six Months Ended
	June 30, 2023				March 31, 2023				% Q/Q			June 30, 2022				% Y/Y			June 30, 2023				June 30, 2022				% Y/Y
Shipments in metric tons:		62,573				46,867			33.5	%			97,007			(35.5	)%			109,440				172,089			(36.4	)%
Average selling price ($/MT):		1,248				1,316			(5.2	)%			1,986			(37.2	)%			1,277				1,959			(34.8	)%
Manganese-based Alloys Revenue ($,000)		78,091				61,677			26.6	%			192,656			(59.5	)%			139,768				337,189			(58.5	)%
Manganese-based Alloys Adj.EBITDA ($,000)		1,065				2,043			(47.9	)%			32,871			(96.8	)%			3,108				53,242			(94.2	)%
Manganese-based Alloys Adj.EBITDA Mgns		1.4	%			3.3	%						17.1	%						2.2	%			15.8	%

Manganese-based alloy revenue in the second quarter was $78 million, an increase of 26.6% over the prior quarter. Average realized selling prices decreased by 5.2% linked to continued index price declines while total shipments increased 33.5% due to the resuming of operations in France and increased operations in Spain driven by lower energy prices. Adjusted EBITDA for the manganese-based alloys portfolio decreased to $1 million in the second quarter, a decrease of 47.9% compared with $2 million for the prior quarter. EBITDA margin in the quarter decreased as a result of a decline in the Manganese Spread.

Subsequent Events

Redemption of $150 million of its 9.375% Senior Secured Notes

On July 21, 2023 the Company announced that its subsidiary issuers of the 9.375% Senior Secured Notes due 2025 (the “Notes”) have given a notice of partial redemption of such Notes at 102.34375% of the principal amount plus accrued interest. The issuers elected to redeem an aggregate principal amount of $150 million of the Notes plus accrued and unpaid interest of approximately $14 million on July 31, 2023. The Notes were redeemed with cash on the balance sheet.

Conference Call

Ferroglobe invites all interested persons to participate on its conference call at 8:30 AM, Eastern Time on August 15, 2023. Please dial-in at least five minutes prior to the call to register. The call may also be accessed via an audio webcast.

To join via phone:                                                                         
Conference call participants should pre-register using this link:        
https://register.vevent.com/register/BIa07b56b2c46349bb8183571efe30a4a8
Once registered, you will receive the dial-in numbers and a personal PIN, which are required to access the conference call.

To join via webcast:                
A simultaneous audio webcast, and replay will be accessible here:        
https://edge.media-server.com/mmc/p/d39f9hrr

About Ferroglobe

Ferroglobe PLC is a leading global producer of silicon metal, silicon- and manganese- based specialty alloys and ferroalloys, serving a customer base across the globe in dynamic and fast-growing end markets, such as solar, electronics, 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

This document may contain summarized, non-audited or non-GAAP financial information. The information contained herein should therefore be considered as a whole and in conjunction with all the public information regarding the Company available, including any other documents released by the Company that may contain more detailed information. Adjusted EBITDA, adjusted EBITDA as a percentage of sales, working capital as a percentage of sales, adjusted EBITDA margin, adjusted net profit, adjusted profit per share, working capital, adjusted gross debt and net debt, are non-IFRS financial metrics that management uses in its decision making. Ferroglobe has included these financial metrics to provide supplemental measures of its performance. The Company believes these metrics are important and useful to investors 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:

Alex Rotonen, CFA
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				Six Months Ended				Six Months Ended
	June 30, 2023				March 31, 2023				June 30, 2022				June 30, 2023				June 30, 2022
Sales	$	456,441			$	400,868			$	840,808			$	857,309			$	1,556,073
Raw materials and energy consumption for production		(229,077	)			(255,036	)			(369,749	)			(484,113	)			(710,304	)
Energy consumption for production (PPA impact)		(23,193	)			23,193				—				—				—
Other operating income		27,689				14,814				26,223				42,503				49,231
Staff costs		(74,972	)			(67,543	)			(80,704	)			(142,515	)			(162,690	)
Other operating expense		(77,202	)			(54,145	)			(130,992	)			(131,347	)			(214,168	)
Depreciation and amortization charges, operating allowances and write-downs		(16,452	)			(17,990	)			(20,185	)			(34,442	)			(41,294	)
Impairment (loss) gain		(887	)			246				—				(641	)			—
Other gain (loss)		499				47				(103	)			546				(420	)
Operating profit		62,846				44,454				265,298				107,300				476,428
Net finance (income) expense		(895	)			(10,980	)			(12,829	)			(11,875	)			(25,284	)
Exchange differences		(5,367	)			1,455				(7,882	)			(3,912	)			(12,275	)
Profit before tax		56,584				34,929				244,587				91,513				438,869
Income tax (loss)		(20,520	)			(9,461	)			(59,529	)			(29,981	)			(103,024	)
Profit for the period		36,064				25,468				185,058				61,532				335,845
Profit (loss) attributable to non-controlling interest		(4,156	)			(4,477	)			265				(8,633	)			641
Profit attributable to the parent	$	31,908			$	20,991			$	185,323			$	52,899			$	336,486
EBITDA	$	79,298			$	62,444			$	285,483			$	141,742			$	517,722
Adjusted EBITDA	$	105,674			$	44,767			$	303,159			$	150,441			$	544,277
Weighted average shares outstanding
Basic		187,872				187,873				187,441				187,873				187,424
Diluted		190,174				189,629				188,538				189,914				188,567
Profit (loss) per ordinary share
Basic	$	0.17			$	0.11			$	0.99			$	0.28			$	1.80
Diluted	$	0.17			$	0.11			$	0.98			$	0.28			$	1.78

Ferroglobe PLC and Subsidiaries
Unaudited Condensed Consolidated Statement of Financial Position
(in thousands of U.S. dollars)
	June 30,				March 31,				December 31,
	2023				2023				2022
ASSETS
Non-current assets
Goodwill	$	29,702			$	29,702			$	29,702
Other intangible assets		125,403				223,447				111,797
Property, plant and equipment		500,546				497,557				486,247
Other non-current financial assets		14,175				14,702				14,186
Deferred tax assets		8,683				7,123				7,136
Non-current receivables from related parties		1,630				2,915				1,600
Other non-current assets		19,633				19,297				18,218
Non-current restricted cash and cash equivalents		2,173				2,175				2,133
Total non-current assets		701,945				796,918				671,019
Current assets
Inventories		384,526				417,042				500,080
Trade and other receivables		281,821				312,452				425,474
Current receivables from related parties		2,726				2,728				2,675
Current income tax assets		16,290				7,652				6,104
Other current financial assets		2				2				3
Other current assets		104,237				26,914				30,608
Assets and disposal groups classified as held for sale		1,087				1,088				1,067
Current restricted cash and cash equivalents		2,406				2,411				2,875
Cash and cash equivalents		358,602				339,611				317,935
Total current assets		1,151,697				1,109,900				1,286,821
Total assets	$	1,853,642			$	1,906,818			$	1,957,840
EQUITY AND LIABILITIES
Equity	$	823,595			$	658,490			$	756,813
Non-current liabilities
Deferred income		77,514				128,125				3,842
Provisions		52,664				50,937				47,670
Bank borrowings		15,354				15,590				15,774
Lease liabilities		11,634				11,744				12,942
Debt instruments		302,572				304,621				330,655
Other financial liabilities		66,558				39,276				38,279
Other Obligations		31,763				36,310				37,502
Other non-current liabilities		137				22				12
Deferred tax liabilities		34,265				35,272				35,854
Total non-current liabilities		592,461				621,897				522,530
Current liabilities
Provisions		55,935				146,501				145,507
Bank borrowings		64,793				31,462				62,059
Lease liabilities		7,551				7,492				8,929
Debt instruments		11,668				4,688				12,787
Other financial liabilities		12,500				43,950				60,382
Financial Instruments		—				79,331				—
Payables to related parties		2,521				2,377				1,790
Trade and other payables		191,376				147,150				219,666
Current income tax liabilities		3,494				48,326				53,234
Other Obligations		13,589				18,790				9,580
Other current liabilities		74,159				96,364				104,563
Total current liabilities		437,586				626,431				678,497
Total equity and liabilities	$	1,853,642			$	1,906,818			$	1,957,840

Ferroglobe PLC and Subsidiaries
Unaudited Condensed Consolidated Statement of Cash Flows
	Quarter Ended				Quarter Ended				Quarter Ended				Six Months Ended				Six Months Ended
	June 30, 2023				March 31, 2023				June 30, 2022				June 30, 2023				June 30, 2022
Cash flows from operating activities:
Profit for the period	$	36,064			$	25,468			$	185,058			$	61,532			$	335,845
Adjustments to reconcile net (loss) profit to net cash used by operating activities:
Income tax (benefit) expense		20,520				9,461				59,529				29,981				103,024
Depreciation and amortization charges, operating allowances and write-downs		16,452				17,990				20,185				34,442				41,294
Net finance expense		895				10,980				12,829				11,875				25,284
Exchange differences		5,367				(1,455	)			7,882				3,912				12,275
Impairment losses		887				(246	)			—				641				—
Net loss (gain) due to changes in the value of asset		(344	)			(25	)			(10	)			(369	)			(16	)
Gain on disposal of non-current assets		(161	)			(22	)			—				(183	)			302
Share-based compensation		2,041				1,905				970				3,946				2,777
Other adjustments		6				—				112				6				133
Changes in operating assets and liabilities
(Increase) decrease in inventories		30,132				86,275				(59,568	)			116,407				(133,179	)
(Increase) decrease in trade receivables		29,326				118,714				(25,963	)			148,040				(147,730	)
Increase (decrease) in trade payables		19,169				(73,864	)			(10,959	)			(54,695	)			29,114
Other		(61,617	)			(44,100	)			5,654				(105,717	)			(6,809	)
Income taxes paid		(75,165	)			(16,298	)			(30,901	)			(91,463	)			(31,588	)
Net cash provided (used) by operating activities		23,572				134,783				164,818				158,355				230,726
Cash flows from investing activities:
Interest and finance income received		969				668				140				1,637				208
Payments due to investments:
Other intangible assets		(940	)			—				—				(940	)			—
Property, plant and equipment		(22,662	)			(17,960	)			(13,855	)			(40,622	)			(23,048	)
Other		—				—				6				—				6
Net cash (used) provided by investing activities		(22,633	)			(17,292	)			(13,709	)			(39,925	)			(22,834	)
Cash flows from financing activities:
Payment for debt and equity issuance costs		—				—				(100	)			—				(100	)
Proceeds from debt issuance		—				—				—				—				(4,943	)
Repayment of debt instruments		(1,742	)			(26,283	)			—				(28,025	)			—
Increase/(decrease) in bank borrowings:														—				—
Borrowings		152,210				109,762				301,360				261,972				545,524
Payments		(126,840	)			(141,900	)			(292,253	)			(268,740	)			(529,880	)
Amounts paid due to leases		(2,851	)			(2,247	)			(2,277	)			(5,098	)			(4,795	)
Proceeds from other financing liabilities		—				—				—				—				—
Other amounts received/(paid) due to financing activities		—				(17,377	)			(19,119	)			(17,377	)			19,179
Interest paid		(1,721	)			(18,192	)			(2,376	)			(19,913	)			(37,175	)
Net cash (used) provided by financing activities		19,056				(96,237	)			(14,765	)			(77,181	)			(12,190	)
Total net cash flows for the period		19,995				21,254				136,344				41,249				195,702
Beginning balance of cash and cash equivalents		344,197				322,943				176,022				322,943				116,663
Exchange differences on cash and cash equivalents in foreign currencies		(1,011	)			—				(5,855	)			(1,011	)			(5,854	)
Ending balance of cash and cash equivalents	$	363,181			$	344,197			$	306,511			$	363,181			$	306,511
Cash from continuing operations		358,602				339,611				304,434				358,602				304,434
Current/Non-current restricted cash and cash equivalents		4,579				4,586				2,077				4,579				2,077
Cash and restricted cash in the statement of financial position	$	363,181			$	344,197			$	306,511			$	363,181			$	306,511

Adjusted EBITDA ($,000):

	Quarter Ended				Quarter Ended				Quarter Ended				Six Months Ended				Six Months Ended
	June 30, 2023				March 31, 2023				June 30, 2022				June 30, 2023				June 30, 2022
Profit attributable to the parent	$	31,908			$	20,991			$	185,323			$	52,899			$	336,486
Profit (loss) attributable to non-controlling interest		4,156				4,477				(265	)			8,633				(641	)
Income tax expense		20,520				9,461				59,529				29,981				103,024
Net finance expense		895				10,980				12,829				11,875				25,284
Exchange differences		5,367				(1,455	)			7,882				3,912				12,275
Depreciation and amortization charges, operating allowances and write-downs		16,452				17,990				20,185				34,442				41,294
EBITDA		79,298				62,444				285,483				141,742				517,722
Impairment		887				(246	)			—				641				—
Restructuring and termination costs		—				—				3,406				—				9,315
New strategy implementation		(77	)			2,049				14,270				1,972				17,240
Subactivity		2,373				3,713				—				6,086				—
PPA Energy		23,193				(23,193	)			—				—
Adjusted EBITDA	$	105,674			$	44,767			$	303,159			$	150,441			$	544,277

Adjusted profit attributable to Ferroglobe ($,000):

	Quarter Ended				Quarter Ended				Quarter Ended				Six Months Ended				Six Months Ended
	June 30, 2023				March 31, 2023				June 30, 2022				June 30, 2023				June 30, 2022
Profit attributable to the parent	$	31,908			$	20,991			$	185,323			$	52,899			$	336,486
Tax rate adjustment		5,469				(599	)			13,498				5,639				20,429
Impairment		651				(175	)			—				470				—
Restructuring and termination costs		—				—				2,765				—				7,562
New strategy implementation		(57	)			1,459				11,584				1,447				13,995
Subactivity		1,742				2,644				—				4,467				—
PPA Energy		17,024				(16,513	)			—				—
Adjusted profit attributable to the parent	$	56,737			$	7,807			$	213,170			$	64,922			$	378,472

Adjusted diluted profit per share:

	Quarter Ended				Quarter Ended				Quarter Ended				Six Months Ended				Six Months Ended
	June 30, 2023				March 31, 2023				June 30, 2022				June 30, 2023				June 30, 2022
Diluted profit per ordinary share	$	0.17			$	0.11			$	0.98			$	0.28			$	1.78
Tax rate adjustment		0.03				(0.00	)			0.08				0.03				0.12
Impairment		0.00				(0.00	)			—				0.00				—
Restructuring and termination costs		—				—				0.02				—				0.04
New strategy implementation		(0.00	)			0.01				0.06				0.01				0.08
Subactivity		0.01				0.01				—				0.02				—
PPA Energy		0.09				(0.09	)			—				—
Adjusted diluted profit per ordinary share	$	0.30			$	0.05			$	1.14			$	0.34			$	2.02

 

FAQ

What were Ferroglobe's Q2-23 revenue and adjusted EBITDA?

Ferroglobe reported Q2-23 revenue of $456.4 million, up 14% from the prior quarter, and adjusted EBITDA of $105.7 million, up 136% from the prior quarter.

What is Ferroglobe's gross debt and net debt?

Ferroglobe's gross debt is $400.1 million, remaining flat from the prior quarter, and net debt is $37 million, down from $55 million in the prior quarter.

How much total cash does Ferroglobe have?

Ferroglobe has a total cash balance of $363 million as of June 30, 2023.

What is the significance of the US adding Silicon Metal as a critical material?

The US adding Silicon Metal as a critical material highlights its importance in the supply chain and presents an onshoring opportunity for Ferroglobe.

What is Ferroglobe's guidance for the full year of adjusted EBITDA?

Ferroglobe reiterates its guidance for the full year of adjusted EBITDA of $270 to $300 million.