Albemarle Corporation (NYSE: ALB), a Leader in the global specialty chemicals industry, today announced improved full-year 2022 guidance primarily due to the completion of additional lithium contract renegotiations following the company's Q1 2022 earnings release on May 4, 2022.
“Over the past 12 months, we've made significant progress in renegotiating more variable-priced contracts with our lithium customers. Implementation of these contracts is a key driver of the expected year-over-year improvement in our financial results,” said Albemarle CEO Kent Masters. “We now expect full-year 2022 adjusted EBITDA to be up more than 160% from prior year based on favorable market dynamics for our Lithium and Bromine businesses. Both businesses are critical for transitioning to greener energy and advancing electrification and digitalization.”
Full-year 2022 corporate financial results reflect additional index-referenced, variable-price contracts for battery grade lithium sales. Higher net cash from operations guidance incorporates higher earnings partially offset by increased working capital. Outlook for the Bromine and Catalysts businesses remains unchanged.
Net sales
Adjusted EBITDA Adjusted EBITDA Margin Adjusted Diluted EPS
Net Cash from Operations Capital Expenditures
PreviouslyRevised FY 2022 Guidance $5.2 – $5.6 billion $1.7 – $2.0 billion 33% – 36%
$9.25 – $12.25 $500 – $800 million $1.3 – $1.5 billion
FurtherRevised FY 2022 Guidance $5.8 – $6.2 billion $2.2 – $2.5 billion 38% – 40%
$12.30 – $15.00 $550 – $850 million $1.3 – $1.5 billion
Lithium adjusted EBITDA for the full year 2022 is now expected to grow approximately 300% year over year, up from previous outlook. Average realized pricing is now expected to be up approximately 140% year over year resulting from the implementation of index-referenced, variable-price contracts and increased market pricing. Full-year 2022 volume is expected to be up 20-30% year over year primarily due to new capacity coming online (unchanged from previous outlook).
Revised Lithium outlook assumes the company's updated second-quarter 2022 realized selling price remains constant for the remainder of the year. There is potential upside if market pricing remains at historically strong levels.
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