Century Aluminum Company Reports Fourth Quarter and Full Year 2018 Results

　　Century reported a net loss of $65.0 million for the fourth quarter of 2018.? This result compares to a net loss of $20.3 million for the third quarter of 2018.? Fourth quarter results were negatively impacted by $24.3 million of exceptional items, including a $29.1 million lower of cost or net realizable value inventory adjustment (net of tax).

　　The adjusted net loss for the fourth quarter of 2018 was $40.7 million compared to adjusted net income of $2.3 million for the third quarter of 2018.

　　Adjusted EBITDA for the fourth quarter of 2018 was $(18.1) million driven by the historically high alumina price relative to the metal price.? This result was down $46.8 million from the third quarter of 2018 due to lower LME prices.

　　Century's cash position at quarter end was $38.9 million and revolver availability was $156.9 million.

　　For the full year 2018, shipments of primary aluminum were 749,850 tonnes compared with 743,198 tonnes shipped in 2017, reflecting the impact of the Hawesville restart partially offset by the equipment failure at Sebree.? Net sales for the full year 2018 were $1,893.2 million compared with $1,589.1 million for 2017.

　　For the full year 2018, Century reported a net loss of $66.2 million.? This result compares to net income of $48.6 million for the full year 2017.? Full year 2018 results were negatively impacted by $53.2 million of exceptional items, primarily due to a $35.0 million lower of cost or net realizable value inventory adjustment (net of tax) and by $21.1 million related to the equipment failure at Sebree.

　　The adjusted net loss for the full year 2018 was $13.0 million compared to adjusted net income of $34.7 million for the full year 2017.

　　Adjusted EBITDA for the full year 2018 was $86.0 million, down $81.5 million over prior year driven by the historically high alumina price relative to the metal price.

　　“Conditions in our industry remain sound,” commented Michael Bless, President and Chief Executive Officer.? “The global deficit in primary aluminum in 2018 was over 1.5 million tonnes, consisting of a surplus in China and a deficit of over 2 million tonnes in the remainder of the world.? This global deficit level is expected to repeat in 2019.? Demand continues to be strong in our markets in the U.S. and Europe.? The alumina price remains materially above historical levels, correlating to 23% of the metal price during the fourth quarter; we continue to assess alumina’s fair value as 17% or below.? Bottom line, we believe industry conditions should be attractive for Century during 2019, especially once the geopolitical picture for commodities generally becomes clearer.”

　　Bless continued, “We made good progress in our operations during the last several months.? The restart of the idled capacity at Hawesville remains on schedule and on budget, with the startup of the last of the curtailed potlines nearing completion.? The next step will be the determination of the rebuild schedule for the two potlines that have been continuously operating.? Most important, the team at Hawesville has accomplished this complex process without a serious safety incident; this laudable achievement is the result of meticulous planning and training, followed by attention to detail during the execution phase.? At Mt. Holly, we concluded a two-year extension to the 75 percent market power based contract; we remain determined and fully committed to finding a path to achieving full market access, which would enable a return to full production.”

　　“Controllable cost performance was excellent during the quarter.? The relationship between alumina and aluminum prices, as we forecast, had a negative impact on financial performance.? In addition, cash flow was impacted, as expected, by the bulk of the remaining capital spending for the Hawesville restart project.? First quarter financial performance will again be burdened by high realized alumina prices as alumina purchased several months ago will be reflected in our financial statements.? It is important to note that beginning in the second quarter of 2019, we anticipate EBITDA to be positive at spot prices and our liquidity remains strong. In addition, we are confident the company’s financial position will strengthen as a result of incremental profitability from the additional production volume at Hawesville, combined with a reduction in the capital required for this project.”