LONDON, Aug. 15, 2022 (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 second quarter 2022.
FINANCIAL HIGHLIGHTS
- Record Q2 2022 revenue of $840.8 million, up 17.6% over the prior quarter
- Record Q2 2022 Adjusted EBITDA of $303.2 million, up 25.7% over the prior quarter
- Adjusted EBITDA margin improvement of 234 basis points to 36.1% in Q2 2022, up from 33.7% the prior quarter
- Record net profit of $185.1 million (diluted earnings per share of $0.98), compared to net profit of $150.8 million (diluted earnings per share of $0.80) in Q1 2022
- Net debt of $194 million at quarter end, significant decrease from $342 million at the end of Q1
- Bolstered liquidity: total cash of $306.5 million at quarter-end, up $130.5 million from the prior quarter, and new $100 million asset based loan (undrawn)
BUSINESS HIGHLIGHTS
- Stellar performance across the platform; strong pricing across all product categories
- Robust volume demand in manganese alloys
- Successful execution of corporate priorities: significant reduction in net debt and bolstering of liquidity
- Increased run-rate cost savings targets relating to the strategic turnaround plan:
- from the initial run-rate target of $180 million to the revised target of $225 million
- Restart of the second furnace at the Selma, Alabama facility during the quarter; current run-rate annual silicon metal production of 22,000 tons
- Achieved new industry milestones in our silicon metal powders for batteries
- Signing of MOU in the United States to establish low-carbon and fully traceable solar supply chain
- Published inaugural ESG report
Dr. Marco Levi, Ferroglobe’s Chief Executive Officer, commented, “Since designing our transformation plan in 2020, our team has been resilient in pushing forward to bolster our overall competitiveness by refocusing the product portfolio towards higher value added products and continuously improving our cost position. I am proud that for six consecutive quarters now, we have steadily improved our financial results on the back of these various initiatives, and are currently reporting a record-setting second quarter. Our profitablity is the highest in company history, our net debt is the lowest since the formation of Ferroglobe, and our daily operations are running seamlessly. This drastic improvement in our operational and financial results reinforce our current strategy and approach to driving change so that we can ensure that our company remains competitive for the long-term.”
“As the operating environment evolves, our business continues to evolve. We recently published our inaugural ESG report as an initial step towards increased transparency through reporting of key performance metrics. We continue to feel good about the near-term fundamentals in terms of overall demand and pricing, relative to historical pricing levels. However, in the face of macro uncertainty, inflation, and the global energy crisis, we are entering the second half of the year with a degree of caution. Our primary focus remains on driving profitability and cash generation so that we can deliver on our goals,” concluded Dr. Levi.
Second Quarter 2022 Financial Highlights
| Quarter Ended | Quarter Ended | Quarter Ended | Six Months Ended | Six Months Ended | ||||||||||||||||||||||
| $,000 (unaudited) | June 30, 2022 | March 31, 2022 | June 30, 2021 | % CQ/PQ | % CYQ/PYQ | June 30, 2022 | June 30, 2021 | % CY/PY | ||||||||||||||||||
| Sales | $ | 840,808 | $ | 715,265 | $ | 418,538 | 18% | 101% | $ | 1,556,073 | $ | 779,928 | 100% | |||||||||||||
| Raw materials and energy consumption for production | $ | (369,749 | ) | $ | (340,555 | ) | $ | (267,939 | ) | 9% | 38% | $ | (710,304 | ) | $ | (518,104) | 37% | |||||||||
| Operating profit (loss) | $ | 265,298 | $ | 211,130 | $ | 8,421 | 26% | 3,050% | $ | 476,428 | $ | (35,762) | 1,432% | |||||||||||||
| Operating margin | 31.6% | 29.5% | 2% | 30.6% | (5% | ) | ||||||||||||||||||||
| Adjusted net income (loss) attributable to the parent | $ | 213,170 | $ | 165,303 | $ | 2,964 | 29% | 7,092% | $ | 378,472 | $ | (15,208) | 2,589% | |||||||||||||
| Adjusted diluted EPS | $ | 1.14 | $ | 0.88 | $ | 0.02 | $ | 2.02 | $ | (0.10) | ||||||||||||||||
| Adjusted EBITDA | $ | 303,159 | $ | 241,119 | $ | 34,088 | 26% | 789% | $ | 544,277 | $ | 56,157 | 869% | |||||||||||||
| Adjusted EBITDA margin | 36.1% | 33.7% | 8.1% | 35.0% | 7.2% | |||||||||||||||||||||
| Operating cash flow | $ | 164,818 | $ | 65,908 | $ | (3,164 | ) | 150% | 5,309% | $ | 230,726 | $ | 11,627 | 1,884% | ||||||||||||
| Free cash flow1 | $ | 151,109 | $ | 56,783 | $ | (5,738 | ) | 166% | 2,733% | $ | 207,892 | $ | 3,405 | 6,005% | ||||||||||||
| Working Capital | $ | 687,345 | $ | 613,187 | $ | 334,291 | 12% | 106% | $ | 687,345 | $ | 334,291 | 106% | |||||||||||||
| Working Capital as % of Sales2 | 20.4% | 21.4% | 20.0% | 22.1% | 21.4% | |||||||||||||||||||||
| Cash and Restricted Cash | $ | 306,511 | $ | 176,022 | $ | 106,089 | 74% | 189% | $ | 306,511 | $ | 106,089 | 189% | |||||||||||||
| Adjusted Gross Debt3 | $ | 500,472 | $ | 518,093 | $ | 464,078 | (3%) | 8% | $ | 500,472 | $ | 464,078 | 8% | |||||||||||||
| Equity | $ | 637,710 | $ | 475,477 | $ | 299,469 | 34% | 113% | $ | 637,710 | $ | 299,469 | 113% | |||||||||||||
(1) Free cash flow is calculated as operating cash flow plus investing cash flow
(2) Working capital based on annualized quarterly sales respectively
(3) Adjusted gross debt excludes bank borrowings on factoring program and impact of leasing standard IFRS16 at June 30, 2022 Mar 31, 2022 & June 30, 2021
Sales
In the second quarter of 2022, Ferroglobe reported net sales of $840.8 million, up 18% over the prior quarter and up 101% over Q2 2021. The improvement in our second quarter results is primarily attributable to higher volumes across our product portfolio, and higher pricing primarily in silicon based alloys and manganese based alloys. The $126 million increase in sales over the prior quarter was primarily driven by silicon metal, which accounted for $43 million, and manganese-based alloys, which accounted for $48 million.
Raw materials and energy consumption for production
Raw materials and energy consumption for production was $369.8 million in Q2 2022 versus $340.6 million in the prior quarter, an increase of 9%. As a percentage of sales, raw materials and energy consumption for production was 44% in the second quarter of 2022 versus 47.6% in the prior quarter. Costs of several key inputs such as electrodes, paste and coal were adversely impacted by inflationary pressures. Partially offsetting this was a $31.2 milion energy cost benefit in France, which will continue to benefit our costs for the remainder of 2022.
Net Income (Loss) Attributable to the Parent
In Q2 2022, net profit attributable to the Parent was $185.3 million, or $0.98 per diluted share, compared to a net profit attributable to the Parent of $151.2 million, or $0.80 per diluted share in Q1 2022.
Adjusted EBITDA
In Q2 2022, Adjusted EBITDA was $303.2 million, or 36.1% of sales, an increase of 25.7% compared to adjusted EBITDA of $241.1 million, or 33.7% of sales in Q1 2022. The increase in the Q2 2022 Adjusted EBITDA is primarily attributable to volume products increase across all the products. Overall, the positive impact from pricing was $13.4 million and the impact from higher volumes was $49.6 million. During the quarter, the impact of higher costs was $3.9 million, primarily due to the raw material price inflation, partially offset by improved energy costs in Spain and France.
Total Cash
The total cash balance was $306.5 million as of June 30, 2022, up $130.5 million from $176.0 million as of March 31, 2022.
During Q2 2022, we generated positive operating cash flow of $164.8 million, had negative cash flow from investing activities of $13.7 million, and $14.8 million in cash flow from financing activities.
Total Working Capital
Total working capital was $687.3 million in the second quarter of 2022, increasing from $613.2 million at March 31, 2022. The $74.1 million increase in working capital was due primarily to a $40.7 million increase in inventories as a result of higher sales, and a $34.8 million decrease in accounts payables. On a relative basis, we successfully kept working capital as a percentage of sales flat during the second quarter at 20.4%, compared to 21.4% during the prior quarter. This is largely attributable to the financial discipline introduced to our operations over the past year.
Closing of Asset-Based Revolving Credit Facility
The Company closed a new, five-year $100 million North American asset-based revolving credit facility (the “ABL Revolver”), involving Ferroglobe’s subsidiary, Globe Specialty Metals, Inc. (“Globe”), and its wholly owned North American subsidiaries, as borrowers, and Bank of Montreal (“BMO”), as lender and agent, on June 30, 2022.
At closing, there was no drawing under the ABL Revolver. Going forward, potential drawings under the ABL Revolver will be used for general corporate purposes.
The ABL Revolver is subject to a borrowing base comprising North American inventory and accounts receivable of Globe (and certain of its subsidiaries) and bears interest of SOFR plus a spread of 150-175 basis points depending on the level of utilization.
Beatriz García-Cos, Ferroglobe’s Chief Financial Officer, commented, “During the second quarter we successfully executed a number of initiatives, in addition to delivering record setting results. We strengthened our balance sheet by increasing liquidity with a new $100 million asset based loan which offers significantly lower cost of capital relative to our existing debt instruments. Furthermore, we are delivering on our key priority which is significant deleveraging of the balance sheet, with a gross debt target of $200 million. We opportunistically repurchased senior notes in the open market and we successfully redeemed the full $60 million of 9% senior notes in July. The recent upgrades to our credit rating is a further testament to the strengthening of our credit profile.”
“While we have been performing well in a market with strong prices and healthy demand, a significant part of our outperformance has been the result of our transformation initiatives, which should enable us to ensure positive cash generation through the cycle. Since initiating this plan, we have increased our target cost savings from $180 million to $225 million as we identify new areas for further cost reduction, improve efficiencies within our organization, and optimize our working capital in a collective effort to drive cash generation,” added Mrs. García-Cos.
Product Category Highlights
Silicon Metal
| Quarter Ended | Quarter Ended | Quarter Ended | Six Months Ended | Six Months Ended | |||||||||||||||||||||||||
| June 30, 2022 | March 31, 2022 | Change | June 30, 2021 | Change | June 30, 2022 | June 30, 2021 | Change | ||||||||||||||||||||||
| Shipments in metric tons: | 62,988 | 56,349 | 11.8 | % | 67,322 | (6.4 | )% | 119,337 | 128,597 | (7.2 | )% | ||||||||||||||||||
| Average selling price ($/MT): | 5,649 | 5,552 | 1.7 | % | 2,347 | 140.7 | % | 5,603 | 2,317 | 141.8 | % | ||||||||||||||||||
| Silicon Metal Revenue ($,000) | 355,819 | 312,850 | 13.7 | % | 158,005 | 125.2 | % | 668,669 | 297,959 | 124.4 | % | ||||||||||||||||||
| Silicon Metal Adj.EBITDA ($,000) | 175,108 | 151,661 | 15.5 | % | 13,655 | 1182.4 | % | 326,769 | 28,417 | 1049.9 | % | ||||||||||||||||||
| Silicon Metal Adj.EBITDA Mgns | 49.2 | % | 48.5 | % | 8.6 | % | 48.9 | % | 9.5 | % | |||||||||||||||||||
Silicon metal revenue in the second quarter was $355.8 million, an increase of 13.7% over the prior quarter. Total shipments of silicon metal increased 11.8% due to continued demand strength in the chemical and aluminum end markets, the restart of our Selma, Alabama facility, some carry over from Q1´22 due to logistical challenges. Costs were adversely impacted by inflationary pressure on raw materials and general operating costs ($10.4 million), increases across several other areas ($2.2 million), and positively offset by the current quarter’s net impact on the energy price adjustment in France ($12.2 million). Adjusted EBITDA for silicon metal increased to $175.1 million during the second quarter, up 15.5% from $151.7 million the prior quarter.
Silicon-Based Alloys
| Quarter Ended | Quarter Ended | Quarter Ended | Six Months Ended | Six Months Ended | |||||||||||||||||||||||||
| June 30, 2022 | March 31, 2022 | Change | June 30, 2021 | Change | June 30, 2022 | June 30, 2021 | Change | ||||||||||||||||||||||
| Shipments in metric tons: | 57,658 | 57,594 | 0.1 | % | 65,222 | (11.6 | )% | 115,252 | 126,826 | (9.1 | )% | ||||||||||||||||||
| Average selling price ($/MT): | 4,097 | 3,680 | 11.3 | % | 1,830 | 123.9 | % | 3,889 | 1,750 | 122.2 | % | ||||||||||||||||||
| Silicon-based Alloys Revenue ($,000) | 236,225 | 211,946 | 11.5 | % | 119,356 | 97.9 | % | 448,171 | 221,946 | 101.9 | % | ||||||||||||||||||
| Silicon-based Alloys Adj.EBITDA ($,000) | 97,141 | 78,411 | 23.9 | % | 11,380 | 753.6 | % | 175,552 | 21,474 | 717.5 | % | ||||||||||||||||||
| Silicon-based Alloys Adj.EBITDA Mgns | 41.1 | % | 37.0 | % | 9.5 | % | 39.2 | % | 9.7 | % | |||||||||||||||||||
Silicon-based alloy revenue in the second quarter was $236.2 million, an increase of 11.5% over the prior quarter. The average realized selling price improve by 11.3%, due to product mix, with a greater weighting towards specialty grades and higher priced foundry products. Total shipments were in-line over the prior quarter. Costs were adversely impacted by inflationary pressures across raw materials and general operating costs ($6.6 million), and expenses related to the Chateau Feulliet facility in France ($4.1 million). This part of our business benefited from the positive energy price adjustment in Frnace ($2.9 million). Adjusted EBITDA for the silicon- based alloys portfolio increased to $97.1 million, up 23.9% from $78.4 million the prior quarter.
Manganese-Based Alloys
| Quarter Ended | Quarter Ended | Quarter Ended | Six Months Ended | Six Months Ended | |||||||||||||||||||||||||
| June 30, 2022 | March 31, 2022 | Change | June 30, 2021 | Change | June 30, 2022 | June 30, 2021 | Change | ||||||||||||||||||||||
| Shipments in metric tons: | 97,007 | 75,082 | 29.2 | % | 68,323 | 42.0 | % | 172,089 | 140,932 | 22.1 | % | ||||||||||||||||||
| Average selling price ($/MT): | 1,986 | 1,925 | 3.2 | % | 1,414 | 40.5 | % | 1,959 | 1,290 | 51.9 | % | ||||||||||||||||||
| Manganese-based Alloys Revenue ($,000) | 192,656 | 144,533 | 33.3 | % | 96,609 | 99.4 | % | 337,189 | 181,802 | 85.5 | % | ||||||||||||||||||
| Manganese-based Alloys Adj.EBITDA ($,000) | 32,871 | 20,371 | 61.4 | % | 15,662 | 109.9 | % | 53,242 | 25,836 | 106.1 | % | ||||||||||||||||||
| Manganese-based Alloys Adj.EBITDA Mgns | 17.1 | % | 14.1 | % | 16.2 | % | 15.8 | % | 14.2 | % | |||||||||||||||||||
Manganese-based alloy revenue in the second quarter was $192.7 million, an increase of 33.3% over the prior quarter. Total shipments of manganese-based alloys increased 29.2%. Averaged realized selling prices were positively impacted by the increase in index pricing which continued in Q2 2022. During the quarter, Adjusted EBITDA from our manganese-based alloys portfolio was $32.9 million, up 61.4% over the prior quarter as a result of higher volumes. Costs were adversely impacted by the mark-to-market accounting treatment relating to the earn-out provision ($6.7 million), an increase in raw material costs ($0.5 million), and positively offset by improved energy costs in Spain and France ($6.1 million).
Russia – Ukraine War
The recent outbreak of war between Russia and Ukraine has disrupted supply chains and caused instability in the global economy, while the United States and the European Union, among other countries, announced sanctions against Russia. The ongoing conflict could result in the imposition of further economic sanctions against Russia. Sanctions imposed on coal & assimilated products such as anthracite and metallurgical coke have obliged Ferroglobe to redirect its sourcing of such products to other origins at a moment of strong market demand. The uncertain supply and logistical conditions in Russia have also led Ferroglobe to diversify its sourcing of carbon electrodes. New sourcing were put in place during the course of Q2 2022 allowing Ferroglobe to ensure supply continuity to its operations worldwide. Although Ferroglobe managed successfully to ensure supply continuity at its operations, it was impacted by the short-term increase of raw materials prices linked to the conflict.
Subsequent events
Redemption of 9.0% Senior Secured Notes due 2025
On July 11, the Company announce the giving of a notice of redemption of all of the 9.0% Senior Secured Notes due 2025 issued by the Issuer (the “Notes”) at 100% of the principal amount thereof plus accrued interest. On the date hereof, $60 million in aggregate principal amount was outstanding. The redemption has been carried out on July 21, 2022.
Conference Call
Ferroglobe invites all interested persons to participate on its conference call at 8:30 AM, U.S. Eastern Daylight Time on August 16, 2022. 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/BIff8f07e860f54efe8cf0e341348f49d0
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/rvdq3dxw
About Ferroglobe
Ferroglobe is one of the world’s leading suppliers of silicon metal, silicon- and manganese-based specialty alloys, and other 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
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 margin, adjusted net profit, adjusted profit per share, working capital 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:
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 | Six Months Ended | Six Months Ended | ||||||||||||||||
| June 30, 2022 | March 31, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | ||||||||||||||||
| Sales | $ | 840,808 | $ | 715,265 | $ | 418,538 | $ | 1,556,073 | $ | 779,928 | ||||||||||
| Raw materials and energy consumption for production | (369,749 | ) | (340,555 | ) | (267,939 | ) | (710,304 | ) | (518,104 | ) | ||||||||||
| Other operating income | 26,223 | 23,008 | 37,105 | 49,231 | 39,018 | |||||||||||||||
| Staff costs | (80,704 | ) | (81,986 | ) | (63,197 | ) | (162,690 | ) | (158,464 | ) | ||||||||||
| Other operating expense | (130,992 | ) | (83,176 | ) | (93,171 | ) | (214,168 | ) | (130,006 | ) | ||||||||||
| Depreciation and amortization charges, operating allowances and write-downs | (20,185 | ) | (21,109 | ) | (23,523 | ) | (41,294 | ) | (48,808 | ) | ||||||||||
| Other gain (loss) | (103 | ) | (317 | ) | 608 | (420 | ) | 674 | ||||||||||||
| Operating profit (loss) | 265,298 | 211,130 | 8,421 | 476,428 | (35,762 | ) | ||||||||||||||
| Net finance expense | (12,829 | ) | (12,455 | ) | (11,178 | ) | (25,284 | ) | (27,042 | ) | ||||||||||
| Exchange differences | (7,882 | ) | (4,393 | ) | 3,237 | (12,275 | ) | (6,077 | ) | |||||||||||
| Profit (loss) before tax | 244,587 | 194,282 | 480 | 438,869 | (68,881 | ) | ||||||||||||||
| Income tax benefit (loss) | (59,529 | ) | (43,495 | ) | 250 | (103,024 | ) | 1,094 | ||||||||||||
| Profit (loss) for the period | 185,058 | 150,787 | 730 | 335,845 | (67,787 | ) | ||||||||||||||
| Loss attributable to non-controlling interest | 265 | 376 | 1,180 | 641 | 2,315 | |||||||||||||||
| Profit (loss) attributable to the parent | $ | 185,323 | $ | 151,163 | $ | 1,910 | $ | 336,486 | $ | (65,472 | ) | |||||||||
| EBITDA | $ | 285,483 | $ | 232,239 | $ | 31,944 | $ | 517,722 | $ | 13,046 | ||||||||||
| Adjusted EBITDA | $ | 303,159 | $ | 241,119 | $ | 34,088 | $ | 544,277 | $ | 56,157 | ||||||||||
| Weighted average shares outstanding | ||||||||||||||||||||
| Basic | 187,441 | 187,408 | 169,298 | 187,424 | 169,295 | |||||||||||||||
| Diluted | 188,538 | 188,583 | 169,298 | 188,567 | 169,295 | |||||||||||||||
| Profit (loss) per ordinary share | ||||||||||||||||||||
| Basic | $ | 0.99 | $ | 0.81 | $ | 0.01 | $ | 1.80 | $ | (0.39 | ) | |||||||||
| Diluted | $ | 0.98 | $ | 0.80 | $ | 0.01 | $ | 1.78 | $ | (0.39 | ) | |||||||||
Ferroglobe PLC and Subsidiaries
Unaudited Condensed Consolidated Statement of Financial Position
(in thousands of U.S. dollars)
| June 30, | March 31, | December 31, | ||||||||||
| 2022 | 2022 | 2021 | ||||||||||
| ASSETS | ||||||||||||
| Non-current assets | ||||||||||||
| Goodwill | $ | 29,702 | $ | 29,702 | $ | 29,702 | ||||||
| Other intangible assets | 94,866 | 188,407 | 100,642 | |||||||||
| Property, plant and equipment | 528,198 | 548,862 | 554,914 | |||||||||
| Other non-current financial assets | 3,920 | 3,977 | 4,091 | |||||||||
| Deferred tax assets | 124 | 246 | 7,010 | |||||||||
| Non-current receivables from related parties | 1,558 | 1,665 | 1,699 | |||||||||
| Other non-current assets | 17,818 | 18,819 | 18,734 | |||||||||
| Non-current restricted cash and cash equivalents | 2,077 | 2,220 | 2,272 | |||||||||
| Total non-current assets | 678,263 | 793,898 | 719,064 | |||||||||
| Current assets | ||||||||||||
| Inventories | 403,004 | 362,298 | 289,797 | |||||||||
| Trade and other receivables | 498,619 | 499,953 | 381,073 | |||||||||
| Current receivables from related parties | 2,605 | 2,784 | 2,841 | |||||||||
| Current income tax assets | 2,314 | 408 | 7,660 | |||||||||
| Other current financial assets | 203 | 203 | 104 | |||||||||
| Other current assets | 15,518 | 11,838 | 8,408 | |||||||||
| Current restricted cash and cash equivalents | — | — | — | |||||||||
| Cash and cash equivalents | 304,434 | 173,802 | 114,391 | |||||||||
| Total current assets | 1,226,697 | 1,051,286 | 804,274 | |||||||||
| Total assets | $ | 1,904,960 | $ | 1,845,184 | $ | 1,523,338 | ||||||
| EQUITY AND LIABILITIES | ||||||||||||
| Equity | $ | 637,710 | $ | 475,477 | $ | 320,031 | ||||||
| Non-current liabilities | ||||||||||||
| Deferred income | 48,961 | 70,699 | 895 | |||||||||
| Provisions | 55,771 | 57,858 | 60,958 | |||||||||
| Bank borrowings | 2,922 | 3,360 | 3,670 | |||||||||
| Lease liabilities | 9,514 | 10,636 | 9,968 | |||||||||
| Debt instruments | 385,911 | 404,954 | 404,938 | |||||||||
| Other financial liabilities (1) | 37,020 | 38,674 | 4,549 | |||||||||
| Other Obligations (2) | 43,232 | 37,241 | 38,082 | |||||||||
| Other non-current liabilities (2) | — | — | 1,476 | |||||||||
| Deferred tax liabilities | 41,228 | 35,423 | 25,145 | |||||||||
| Total non-current liabilities | 624,559 | 658,845 | 549,681 | |||||||||
| Current liabilities | ||||||||||||
| Provisions | 95,300 | 159,386 | 137,625 | |||||||||
| Bank borrowings | 96,412 | 95,359 | 95,297 | |||||||||
| Lease liabilities | 7,342 | 7,869 | 8,390 | |||||||||
| Debt instruments | 15,075 | 6,382 | 35,359 | |||||||||
| Other financial liabilities (1) | 57,653 | 62,141 | 62,464 | |||||||||
| Payables to related parties | 9,605 | 8,685 | 9,545 | |||||||||
| Trade and other payables | 214,278 | 249,064 | 206,000 | |||||||||
| Current income tax liabilities | 43,193 | 21,208 | 1,775 | |||||||||
| Other Obligations (2) | 16,469 | 18,369 | 22,843 | |||||||||
| Other current liabilities (2) | 87,364 | 82,399 | 74,328 | |||||||||
| Total current liabilities | 642,691 | 710,862 | 653,626 | |||||||||
| Total equity and liabilities | $ | 1,904,960 | $ | 1,845,184 | $ | 1,523,338 | ||||||
(1) On January 25, 2022, the Ministry opened a hearing to decide on reimbursement of the loan. The company presented its allegations on February 15, 2022. Based on those allegations, the reimbursement procedure has been suspended and a new final report is expected to be made by the Ministry by the end of 2022 ending the administrative procedure and establishing the definitive amount of the partial reimbursement to be made. However, for accounting purposes the entire loan was considered short-term
(2) In 2021 we disaggregated “Other liabilities” into an additional line to the balance sheet “Other obligations“ to separately present certain contractual obligations whose nature and function differs from other items presented in the “Other liabilities line”, so as to allow a better understanding of the Company´s financial position.
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, 2022 | March 31, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | ||||||||||||||||
| Cash flows from operating activities: | ||||||||||||||||||||
| Profit (loss) for the period | $ | 185,058 | $ | 150,787 | $ | 730 | $ | 335,845 | $ | (67,787 | ) | |||||||||
| Adjustments to reconcile net (loss) profit to net cash used by operating activities: | ||||||||||||||||||||
| Income tax (benefit) expense | 59,529 | 43,495 | (250 | ) | 103,024 | (1,094 | ) | |||||||||||||
| Depreciation and amortization charges, operating allowances and write-downs | 20,185 | 21,109 | 23,523 | 41,294 | 48,808 | |||||||||||||||
| Net finance expense | 12,829 | 12,455 | 11,178 | 25,284 | 27,042 | |||||||||||||||
| Exchange differences | 7,882 | 4,393 | (3,237 | ) | 12,275 | 6,077 | ||||||||||||||
| Net loss (gain) due to changes in the value of asset | (10 | ) | (6 | ) | (243 | ) | (16 | ) | (264 | ) | ||||||||||
| Gain on disposal of non-current assets | — | 302 | — | 302 | (43 | ) | ||||||||||||||
| Share-based compensation | 970 | 1,807 | 673 | 2,777 | 886 | |||||||||||||||
| Other adjustments (1) | 112 | 21 | (366 | ) | 133 | (368 | ) | |||||||||||||
| Changes in operating assets and liabilities | — | |||||||||||||||||||
| (Increase) decrease in inventories | (59,568 | ) | (73,611 | ) | (8,770 | ) | (133,179 | ) | 2,676 | |||||||||||
| (Increase) decrease in trade receivables | (25,963 | ) | (121,767 | ) | (8,625 | ) | (147,730 | ) | (50,317 | ) | ||||||||||
| Increase (decrease) in trade payables | (10,959 | ) | 40,073 | 16,184 | 29,114 | 42,336 | ||||||||||||||
| Other | 5,654 | (12,463 | ) | (32,783 | ) | (6,809 | ) | 4,910 | ||||||||||||
| Income taxes paid | (30,901 | ) | (687 | ) | (1,178 | ) | (31,588 | ) | (1,235 | ) | ||||||||||
| Net cash provided (used) by operating activities | 164,818 | 65,908 | (3,164 | ) | 230,726 | 11,627 | ||||||||||||||
| Cash flows from investing activities: | ||||||||||||||||||||
| Interest and finance income received | 140 | 68 | 128 | 208 | 163 | |||||||||||||||
| Payments due to investments: | ||||||||||||||||||||
| Other intangible assets (1) | — | — | — | — | — | |||||||||||||||
| Property, plant and equipment | (13,855 | ) | (9,193 | ) | (3,245 | ) | (23,048 | ) | (8,928 | ) | ||||||||||
| Other | 6 | — | — | 6 | — | |||||||||||||||
| Disposals: | — | |||||||||||||||||||
| Other non-current assets | — | — | 543 | — | 543 | |||||||||||||||
| Net cash (used) provided by investing activities | (13,709 | ) | (9,125 | ) | (2,574 | ) | (22,834 | ) | (8,222 | ) | ||||||||||
| Cash flows from financing activities: | ||||||||||||||||||||
| Payment for debt and equity issuance costs | (100 | ) | — | (11,093 | ) | (100 | ) | (17,691 | ) | |||||||||||
| Proceeds from debt issuance | — | (4,943 | ) | 40,000 | (4,943 | ) | 40,000 | |||||||||||||
| Increase/(decrease) in bank borrowings: | — | |||||||||||||||||||
| Borrowings | 301,360 | 244,164 | 149,945 | 545,524 | 277,635 | |||||||||||||||
| Payments | (292,253 | ) | (237,627 | ) | (144,983 | ) | (529,880 | ) | (302,447 | ) | ||||||||||
| Amounts paid due to leases | (2,277 | ) | (2,518 | ) | (3,157 | ) | (4,795 | ) | (6,013 | ) | ||||||||||
| Other amounts received/(paid) due to financing activities | (19,119 | ) | 38,298 | — | 19,179 | — | ||||||||||||||
| Interest paid | (2,376 | ) | (34,799 | ) | (3,333 | ) | (37,175 | ) | (20,348 | ) | ||||||||||
| Net cash (used) provided by financing activities | (14,765 | ) | 2,575 | 27,379 | (12,190 | ) | (28,864 | ) | ||||||||||||
| Total net cash flows for the period | 136,344 | 59,358 | 21,641 | 195,702 | (25,459 | ) | ||||||||||||||
| Beginning balance of cash and cash equivalents | 176,022 | 116,663 | 84,367 | 116,663 | 131,557 | |||||||||||||||
| Exchange differences on cash and cash equivalents in foreign currencies | (5,855 | ) | 1 | 81 | (5,854 | ) | (9 | ) | ||||||||||||
| Ending balance of cash and cash equivalents | $ | 306,511 | $ | 176,022 | $ | 106,089 | $ | 306,511 | $ | 106,089 | ||||||||||
| Cash from continuing operations | 304,434 | 173,802 | 99,940 | 304,434 | 99,940 | |||||||||||||||
| Current/Non-current restricted cash and cash equivalents | 2,077 | 2,220 | 6,149 | 2,077 | 6,149 | |||||||||||||||
| Cash and restricted cash in the statement of financial position | $ | 306,511 | $ | 176,022 | $ | 106,089 | $ | 306,511 | $ | 106,089 | ||||||||||
Adjusted EBITDA ($,000):
| Quarter Ended | Quarter Ended | Quarter Ended | Six Months Ended | Six Months Ended | ||||||||||||||||
| June 30, 2022 | March 31, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | ||||||||||||||||
| Profit (loss) attributable to the parent | $ | 185,323 | $ | 151,163 | $ | 1,910 | $ | 336,486 | $ | (65,472 | ) | |||||||||
| Profit (loss) attributable to non-controlling interest | (265 | ) | (376 | ) | (1,180 | ) | (641 | ) | (2,315 | ) | ||||||||||
| Income tax (benefit) expense | 59,529 | 43,495 | (250 | ) | 103,024 | (1,094 | ) | |||||||||||||
| Net finance expense | 12,829 | 12,455 | 11,178 | 25,284 | 27,042 | |||||||||||||||
| Exchange differences | 7,882 | 4,393 | (3,237 | ) | 12,275 | 6,077 | ||||||||||||||
| Depreciation and amortization charges, operating allowances and write-downs | 20,185 | 21,109 | 23,523 | 41,294 | 48,808 | |||||||||||||||
| EBITDA | 285,483 | 232,239 | 31,944 | 517,722 | 13,046 | |||||||||||||||
| Restructuring and termination costs | 3,406 | 5,909 | 2,144 | 9,315 | 43,111 | |||||||||||||||
| New strategy implementation | 14,270 | 2,971 | — | 17,240 | — | |||||||||||||||
| Adjusted EBITDA | $ | 303,159 | $ | 241,119 | $ | 34,088 | $ | 544,277 | $ | 56,157 | ||||||||||
Adjusted profit attributable to Ferroglobe ($,000):
| Quarter Ended | Quarter Ended | Quarter Ended | Six Months Ended | Six Months Ended | ||||||||||||||||
| June 30, 2022 | March 31, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | ||||||||||||||||
| Profit (loss) attributable to the parent | $ | 185,323 | $ | 151,163 | $ | 1,910 | $ | 336,486 | $ | (65,472 | ) | |||||||||
| Tax rate adjustment | 13,498 | 6,931 | (404 | ) | 20,429 | 20,948 | ||||||||||||||
| Restructuring and termination costs | 2,765 | 4,797 | 1,458 | 7,562 | 29,315 | |||||||||||||||
| New strategy implementation | 11,584 | 2,412 | — | 13,995 | — | |||||||||||||||
| Adjusted profit (loss) attributable to the parent | $ | 213,170 | $ | 165,303 | $ | 2,964 | $ | 378,472 | $ | (15,208 | ) | |||||||||
Adjusted diluted profit per share:
| Quarter Ended | Quarter Ended | Quarter Ended | Six Months Ended | Six Months Ended | ||||||||||||||||
| June 30, 2022 | March 31, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | ||||||||||||||||
| Diluted profit (loss) per ordinary share | $ | 0.98 | $ | 0.80 | $ | 0.01 | $ | 1.78 | $ | (0.39 | ) | |||||||||
| Tax rate adjustment | 0.08 | 0.04 | (0.00 | ) | 0.12 | 0.12 | ||||||||||||||
| Restructuring and termination costs | 0.02 | 0.03 | 0.01 | 0.04 | 0.17 | |||||||||||||||
| New strategy implementation | 0.06 | 0.01 | — | 0.08 | — | |||||||||||||||
| Adjusted diluted profit (loss) per ordinary share | $ | 1.14 | $ | 0.88 | $ | 0.02 | $ | 2.02 | $ | (0.10 | ) | |||||||||
