Ferroglobe Reports Results for the Fourth Quarter and Full Year 2021
Ferroglobe Reports Results for the Fourth Quarter and Full Year 2021
Highest quarterly revenues since 2018 and record quarterly Adjusted EBITDA
LONDON, March 02, 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 fourth quarter and the full year 2021.
BUSINESS HIGHLIGHTS
- Revenue growth in the fourth quarter was driven by strong fundamentals across all three product categories, which is expected to further fuel performance in 2022
- Tightness in the market is driving pricing to unprecedented levels, primarily silicon metal and ferrosilicon
- Yearly fixed price contracts in silicon metal have expired at year-end 2021, driving a step-change in realized prices in Q1 due to higher market prices and heavier weighting towards index-based contracts
- Outperformed 2021 targets set in turnaround plan with momentum into 2022; repositioning the Company to deliver stronger results through the cycle
FINANCIAL HIGHLIGHTS
- Q4 2021 sales were $569.8 million, up 33% from $429.2 million in the prior quarter
- Record Adjusted EBITDA of $92.8 million in Q4, up 146.9% from $37.6 million in the prior quarter
- Adjusted EBITDA margin in Q4 was 16.3%, an increase from 8.8% in Q3
- Returned to profitability in Q4 with profit attributable to the parent of $66.3 million, compared to a loss of ($96.6 million) in Q3
- Returned to positive free cash flow, generating $14.2 million of free cash-flow in the fourth quarter, up from negative $42.9 million in the prior quarter
- Improved liquidity with total cash of $116.7 million in Q4, up $21.6 million from the prior quarter
Dr. Marco Levi, Ferroglobe’s Chief Executive Officer, commented, “The past year represented an important inflection point for the company as we made significant progress in improving the business operationally and financially, all with the objective of creating a company that can remain competitive through the cycle. The acceleration of performance in Q4 highlights strong momentum across all of our core product categories driving significant top line growth, well ahead of the lingering headwinds caused by energy and other inflation related costs. This market backdrop, coupled with the resetting of our silicon metal contracts, is expected to help fuel a further acceleration in our overall performance into 2022.
“While the current pricing environment is one that benefits Ferroglobe in the near-term, we are not counting solely on elevated prices to drive value creation for our stakeholders. Our comprehensive turnaround plan, which was implemented in 2021, is running ahead of schedule and exceeding our stated targets. While we have made great progress to date, we continue to work towards improving our overall competitiveness in the market,” concluded Dr. Levi.
Fourth Quarter and Full Year 2021 Financial Highlights
| Quarter Ended | Quarter Ended | Quarter Ended | Year Ended | Year Ended | ||||||||||||||||
| $,000 (unaudited) | December 31, 2021 | September 30, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | |||||||||||||||
| Sales | $ | 569,771 | $ | 429,210 | $ | 320,535 | $ | 1,778,908 | $ | 1,144,434 | ||||||||||
| Cost of sales | $ | (371,519 | ) | $ | (295,273 | ) | $ | (272,603 | ) | $ | (1,184,896 | ) | $ | (835,486 | ) | |||||
| Operating profit (loss) | $ | 64,860 | $ | 11,260 | $ | (91,343 | ) | $ | 40,361 | $ | (184,350 | ) | ||||||||
| Operating margin | 11.4 | % | 2.6 | % | (28.5 | )% | 2.3 | % | (16.1 | )% | ||||||||||
| Adjusted net income (loss) attributable to the parent | $ | 45,922 | $ | (64,214 | ) | $ | (40,563 | ) | $ | (33,502 | ) | $ | (98,671 | ) | ||||||
| Adjusted diluted EPS | $ | 0.23 | $ | (0.36 | ) | $ | (0.23 | ) | $ | (0.18 | ) | $ | (0.59 | ) | ||||||
| Adjusted EBITDA | $ | 92,825 | $ | 37,592 | $ | 5,483 | $ | 186,575 | $ | 32,510 | ||||||||||
| Adjusted EBITDA margin | 16.3 | % | 8.8 | % | 1.7 | % | 10.5 | % | 2.8 | % | ||||||||||
| Operating cash flow | $ | 21,707 | $ | (34,677 | ) | $ | 3,527 | $ | (1,341 | ) | $ | 154,268 | ||||||||
| Free cash flow1 | $ | 14,249 | $ | (42,845 | ) | $ | (10,680 | ) | $ | (25,189 | ) | $ | 122,328 | |||||||
| Working Capital | $ | 464,870 | $ | 395,867 | $ | 339,610 | $ | 464,870 | $ | 339,610 | ||||||||||
| Working Capital as % of Sales2 | 20.4 | % | 23.1 | % | 26.5 | % | 26.1 | % | 29.7 | % | ||||||||||
| Cash and Restricted Cash | $ | 116,663 | $ | 95,043 | $ | 131,557 | $ | 116,663 | $ | 131,557 | ||||||||||
| Adjusted Gross Debt3 | $ | 507,711 | $ | 499,270 | $ | 455,110 | $ | 507,711 | $ | 455,110 | ||||||||||
| Equity | $ | 335,068 | $ | 281,910 | $ | 365,719 | $ | 335,068 | $ | 365,719 | ||||||||||
| (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 Dec. 31, 2021 & Dec. 31, 2020 |
Sales
In the fourth quarter of 2021, Ferroglobe reported net sales of $569.8 million, up 33% over the prior quarter and up 78% over the year-ago period. For the full year 2021, sales of $1.78 billion were 55.4% higher than the full year 2020 sales of $1.14 billion. The improvement in both our quarter and annual results is attributable to higher shipments and higher realized prices across the product portfolio.
Cost of Sales
Cost of sales was $371.5 million in Q4 2021 versus $295.3 million in the prior quarter and $272.6 million in the fourth quarter of 2020. Cost of sales as a percentage of sales was 65.2% in the fourth quarter of 2021 versus 68.8% in the prior quarter. The improvement in the cost of sales in Q4 was primarily driven by improved utilization of our asset base, reallocation of orders to optimize economics, stronger operational performance at the furnace level, and continued cost cutting. These costs were partially offset by continued headwinds, particularly higher energy costs in Spain, which increased $25.9 million over the third quarter. For the full year 2021, cost of sales as a percentage of sales was 66.6%, compared to 73.0% during full year 2020.
Net Income (Loss) Attributable to the Parent
In Q4 2021, net profit attributable to the Parent was $66.3 million, or $0.35 per diluted share, compared to a net loss attributable to the Parent of ($96.6) million, or ($0.54) per diluted share in Q3 2021. For the full year 2021, net loss attributable to the Parent was ($95.7) million, or ($0.54) per diluted share, compared to a net loss attributable to the Parent of ($246.4) million during the full year 2020. During Q3 2021 we had significant one-time costs ($90.8) million relating to the refinancing of the senior notes.
Adjusted EBITDA
In Q4 2021, adjusted EBITDA was $92.8 million, or 16.3% of sales, up 146.8% compared to adjusted EBITDA of $37.6 million, or 8.8% of sales in Q3 2021. The increase in the Q4 2021 Adjusted EBITDA is attributable to volumes ($7.9 million) and higher realized prices ($89.6) million. Costs had an adverse impact of ($30.6) million, primarily attributable to higher energy costs ($26.0 million), of which $25.9 million were in Spain, higher raw material prices ($5.7 million), the CO2 accrual ($5.5 million), and lower fixed cost absorption in Spain ($1.6 million). Partially offsetting these costs was a positive impact of the pension plan in France ($3.9 million), proceeds from the sale of the Niagara facility ($1.4 million), and asset disposals ($0.3 million). Furthermore, there was an adverse impact of ($10.5 million) relating to overhead expense. This is due to a bonus accrual charge of ($8.0 million) and an accounting accrual relating to audit charges totaling ($2.0 million).
For the full year 2021, Adjusted EBITDA was $186.6 million, or 10.5% of sales, compared to Adjusted EBITDA of $32.5 million, or 2.8% of sales, for the full year 2020.
Total Cash
The total cash balance was $116.7 million as of December 31, 2021, up $21.6 million, from $95.1 million as of September 30, 2021. The total cash balance was $131.6 million as of December 31, 2020.
During Q4 2021, we generated positive operating cash flow of $21.7 million; had cash flows from investing activities of negative $7.5 million, and had cash flow from financing activities of $7.4 million. Total net cash flow for the period was $21.6 million.
Total Working Capital
Total working capital was $464.9 million in the fourth quarter of 2021, increasing from $395.9 million at September 30, 2021. The $69.0 million increase in working capital was impacted by a $11 million increase in inventory and a $83.4 million increase in accounts receivable as a result of higher sales. On a relative basis, our working capital as a percentage of sales was 20.4% during the fourth quarter, compared to 23.1% during the prior quarter and 29.7% at the end of 2020.
Beatriz García-Cos, Ferroglobe’s Chief Financial Officer, commented, “We ended the year on a strong note, with revenue growing 33% and record setting Adjusted EBITDA increasing by 147%, sequentially. While we continue to be impacted by the high energy costs in Spain and inflationary impact on other costs, we partially offset this by enhancing operational efficiencies and through our cost cutting measures, resulting in a significant improvement in margins. Furthermore, we were able to improve our liquidity from cash generated in the business during this quarter.”
Mrs. Garcia-Cos continued, “2021 was marked by a number of one-off events which consumed a significant amount of cash. With these now behind us, coupled with more efficient working capital management, we are well positioned to accelerate our cash generation. Going forward, we will look to deleverage the balance sheet, reducing overall gross debt and investing in our asset base to a normalized level of approximately $75 million per annum. We think these are critical areas of focus on to ensure the long-term competitiveness of our company and to provide a healthy level of performance throughout the cycle.”
Product Category Highlights
Silicon Metal
| Quarter Ended | Quarter Ended | Quarter Ended | Twelve Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, 2021 | September 30, 2021 | Change | December 31, 2020 | Change | December 31, 2021 | December 31, 2020 | Change | ||||||||||||||||
| Shipments in metric tons: | 63,681 | 61,713 | 3.2 | % | 54,912 | 16.0 | % | 253,991 | 207,332 | 22.5 | % | ||||||||||||
| Average selling price ($/MT): | 2,944 | 2,467 | 19.3 | % | 2,260 | 30.3 | % | 2,511 | 2,234 | 12.4 | % | ||||||||||||
| Silicon Metal Revenue ($,000) | 187,477 | 152,218 | 124,089 | 637,695 | 463,217 | ||||||||||||||||||
| Silicon Metal Adj.EBITDA ($,000) | 32,501 | 11,428 | 1,950 | 72,346 | 27,365 | ||||||||||||||||||
Silicon metal revenue in the fourth quarter was $187.5 million, an increase of 23.2% over the prior quarter. Total shipments of silicon metal increased 3.2%, primarily as a result of continued strength in chemicals and to a lesser extent, the aluminum market in Europe which continues to lag due to continued supply chain issues. Overall tightness in the market, attributable to strong end market demand and ongoing reforms in China, propelled U.S. and European index prices to unprecedented levels during the fourth quarter. Adjusted EBITDA for silicon metal increased to $32.5 million during the fourth quarter, up 184.4% from $11.4 million the prior quarter.
Silicon-Based Alloys
| Quarter Ended | Quarter Ended | Quarter Ended | Twelve Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, 2021 | September 30, 2021 | Change | December 31, 2020 | Change | December 31, 2021 | December 31, 2020 | Change | ||||||||||||||||
| Shipments in metric tons: | 60,078 | 55,863 | 7.5 | % | 57,351 | 4.8 | % | 242,766 | 200,212 | 21.3 | % | ||||||||||||
| Average selling price ($/MT): | 2,770 | 1,992 | 39.1 | % | 1,528 | 81.3 | % | 2,058 | 1,515 | 35.8 | % | ||||||||||||
| Silicon-based Alloys Revenue ($,000) | 166,439 | 111,256 | 87,614 | 499,584 | 303,265 | ||||||||||||||||||
| Silicon-based Alloys Adj.EBITDA ($,000) | 51,174 | 8,375 | 7,086 | 81,022 | 11,664 | ||||||||||||||||||
Silicon-based alloy revenue in the fourth quarter was $166.4 million, an increase of 49.6% over the prior quarter. Total shipments increased 7.5% due to the continued recovery in global steel production. Strong demand for ferrosilicon, coupled with low levels of inventory, sent the index higher in the US and Europe, contributing significantly to the 39.1% increase in average realized prices across silicon-based alloy during the fourth quarter. Adjusted EBITDA for the silicon-based alloys portfolio increased to $51.17 million, up 511.0% from $8.4 million the prior quarter.
Manganese-Based Alloys
| Quarter Ended | Quarter Ended | Quarter Ended | Twelve Months Ended | Twelve Months Ended | ||||||||||||||||||||
| December 31, 2021 | September 30, 2021 | Change | December 31, 2020 | Change | December 31, 2021 | December 31, 2020 | Change | |||||||||||||||||
| Shipments in metric tons: | 97,053 | 76,454 | 26.9 | % | 78,611 | 23.5 | % | 314,439 | 261,605 | 20.2 | % | |||||||||||||
| Average selling price ($/MT): | 1,720 | 1,574 | 9.3 | % | 1,031 | 66.8 | % | 1,492 | 1,022 | 46.0 | % | |||||||||||||
| Manganese-based Alloys Revenue ($,000) | 166,953 | 120,347 | 81,076 | 469,138 | 267,469 | |||||||||||||||||||
| Manganese-based Alloys Adj.EBITDA ($,000) | 28,620 | 22,494 | (108 | ) | 76,950 | 13,159 | ||||||||||||||||||
Manganese-based alloy revenue in the fourth quarter was $166.9 million, an increase of 38.7% over the prior quarter. Total shipments increased 26.9% due to continued recovery in global steel production, and some seasonal spillover of orders from the third quarter. During the quarter, Adjusted EBITDA from our manganese-based alloys portfolio was $28.6 million, up 27.2% over the prior quarter. In addition to the pricing and volume improvement, there was also a shift in the overall product mix which contributed to the quarterly results.
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. Throughout 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 February 15, 2022, the Company announced that the Spanish Fund for supporting strategic companies, on a proposal of the Sociedad Estatal de Participaciones Industriales (“SEPI”), a Spanish state-owned industrial holding company affiliated with the Ministry of Finance and Administration, has approved €34.5 million in loans to Grupo Ferroatlántica, S.A.U. and Grupo Ferroátlantica de Servicios, S.L.U., wholly owned subsidiaries of the Company. These loans are part of the SEPI fund intended to provide assistance to non-financial companies operating in strategically important sectors within Spain in the wake of the COVID-19 pandemic.
The €34.5M is expected to be funded using a dual-tranche loan, with €17.25M maturing in February 2025 and €17.25M maturing in June 2025. €16.9M of the loan carries a fixed interest rate of 2% per annum, and interest on the remaining €17.6M is calculated as IBOR plus a spread of 2.5% in the first year, 3.5% in the second and third years and 5.0% in the fourth year, plus an additional 1.0% payable if the net result of the Beneficiaries is positive. The loans are guaranteed by the Company and certain of its subsidiaries.
Trading Update
Ferroglobe’s estimated unaudited Adjusted EBITDA for January 2022 is approximately $74 million.
Ferroglobe’s portfolio of products benefited from a strong pricing environment in January, particularly with the reset of silicon metal contracts. On the cost side, the business continues to face a number of uncertainties, some of which have been ongoing headwinds for several quarters, such as the high cost and volatility of energy in Spain and inflation across other inputs.
Other emerging developments, such as those stemming from the conflict in Ukraine, could also impact our operations. Russia and Ukraine are meaningful producers of silicon metal, ferroalloys and manganese based alloys, and are also significant suppliers of raw materials for our business and industry. The inability of Russian and Ukrainian producers to meet their customer obligations could potentially create tightness in the market in the immediate term. Likewise, we rely on a number of inputs from Russia and the CIS region, including metcoke, anthracite and carbon and graphite electrodes. Our inability to procure these material can adversely impact our operations.
Management continually tracks developments in the nascent conflict in Ukraine and is committed to actively managing our response to potential distributions to the business, but can provide no assurance that the conflict in Ukraine or other ongoing headwinds will not have a material adverse effect on our business, operations and financial results. Investors should also consider the risk factors and other disclosures in our annual reports on Form 20-F and other filings with the US Securities and Exchange Commission.
Conference Call
Ferroglobe management will review the fourth quarter and full year 2021 results during a conference call at 08:30 a.m. U.S Eastern Standard Time on March 3, 2022.
The dial-in number for participants in the United States is + 1 877-870-9135 (conference ID: 7689183). International callers should dial + 44 (0)-2071-928338 (conference ID: 7689183). 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/w3fff64p
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
This document may contain summarised, 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 | Year Ended | Year Ended | |||||||||||||||
| December 31, 2021 | September 30, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | |||||||||||||||
| Sales | $ | 569,771 | $ | 429,210 | $ | 320,535 | $ | 1,778,908 | $ | 1,144,434 | |||||||||
| Cost of sales | (371,519 | ) | (295,273 | ) | (272,603 | ) | (1,184,896 | ) | (835,486 | ) | |||||||||
| Other operating income | 39,619 | 31,447 | 8,100 | 110,085 | 33,627 | ||||||||||||||
| Staff costs | (72,068 | ) | (50,386 | ) | (54,444 | ) | (280,917 | ) | (214,782 | ) | |||||||||
| Other operating expense | (79,770 | ) | (79,785 | ) | (29,143 | ) | (289,564 | ) | (132,059 | ) | |||||||||
| Depreciation and amortization charges, operating allowances and write-downs | (24,549 | ) | (23,971 | ) | (25,538 | ) | (97,328 | ) | (108,189 | ) | |||||||||
| Impairment gain (loss) | 2,227 | (363 | ) | (39,074 | ) | 1,867 | (73,344 | ) | |||||||||||
| Other gain | 1,149 | 381 | 824 | 2,206 | 1,449 | ||||||||||||||
| Operating profit (loss) | 64,860 | 11,260 | (91,343 | ) | 40,361 | (184,350 | ) | ||||||||||||
| Net finance expense | (12,445 | ) | (103,379 | ) | (19,630 | ) | (142,865 | ) | (66,791 | ) | |||||||||
| Financial derivatives gain | — | — | — | — | 3,168 | ||||||||||||||
| Exchange differences | 9,874 | (6,180 | ) | 7,327 | (2,384 | ) | 25,553 | ||||||||||||
| Profit (loss) before tax | 62,289 | (98,299 | ) | (103,646 | ) | (104,888 | ) | (222,420 | ) | ||||||||||
| Income tax benefit (loss) | 2,789 | 680 | (36,185 | ) | 4,562 | (21,939 | ) | ||||||||||||
| (Loss) profit for the period from continuing operations | 65,078 | (97,619 | ) | (139,831 | ) | (100,326 | ) | (244,359 | ) | ||||||||||
| Loss for the period from discontinued operations | — | — | — | — | (5,399 | ) | |||||||||||||
| Profit (loss) for the period | 65,078 | (97,619 | ) | (139,831 | ) | (100,326 | ) | (249,758 | ) | ||||||||||
| Profit attributable to non-controlling interest | 1,242 | 1,023 | 781 | 4,580 | 3,419 | ||||||||||||||
| Profit (loss) attributable to the parent | $ | 66,320 | $ | (96,596 | ) | $ | (139,050 | ) | $ | (95,746 | ) | $ | (246,339 | ) | |||||
| EBITDA | $ | 89,409 | $ | 35,231 | $ | (65,805 | ) | $ | 137,689 | $ | (76,161 | ) | |||||||
| Adjusted EBITDA | $ | 92,825 | $ | 37,592 | $ | 5,483 | $ | 186,575 | $ | 32,510 | |||||||||
| Weighted average shares outstanding | |||||||||||||||||||
| Basic | 187,358 | 179,849 | 169,262 | 176,508 | 169,269 | ||||||||||||||
| Diluted | 188,587 | 179,849 | 169,262 | 176,508 | 169,269 | ||||||||||||||
| Profit (loss) per ordinary share | |||||||||||||||||||
| Basic | $ | 0.35 | $ | (0.54 | ) | $ | (0.82 | ) | $ | (0.54 | ) | $ | (1.46 | ) | |||||
| Diluted | $ | 0.35 | $ | (0.54 | ) | $ | (0.82 | ) | $ | (0.54 | ) | $ | (1.46 | ) | |||||
| Ferroglobe PLC and Subsidiaries Unaudited Condensed Consolidated Statement of Financial Position (in thousands of U.S. dollars) | |||||||||
| December 31, | September 30, | December 31 | |||||||
| 2021 | 2021 | 2020 | |||||||
| ASSETS | |||||||||
| Non-current assets | |||||||||
| Goodwill | $ | 29,702 | $ | 29,702 | $ | 29,702 | |||
| Other intangible assets | 101,790 | 89,698 | 20,756 | ||||||
| Property, plant and equipment | 555,485 | 567,876 | 620,034 | ||||||
| Other non-current financial assets | 4,091 | 5,198 | 5,057 | ||||||
| Deferred tax assets | 7,010 | 150 | — | ||||||
| Non-current receivables from related parties | 1,699 | 2,316 | 2,454 | ||||||
| Other non-current assets | 18,734 | 17,916 | 11,904 | ||||||
| Non-current restricted cash and cash equivalents | 2,272 | — | — | ||||||
| Total non-current assets | 720,783 | 712,856 | 689,907 | ||||||
| Current assets | |||||||||
| Inventories | 289,797 | 284,488 | 246,549 | ||||||
| Trade and other receivables | 381,073 | 305,453 | 242,262 | ||||||
| Current receivables from related parties | 2,841 | 3,025 | 3,076 | ||||||
| Current income tax assets | 7,660 | 8,195 | 12,072 | ||||||
| Other current financial assets | 104 | 903 | 1,008 | ||||||
| Other current assets | 8,408 | 10,352 | 20,714 | ||||||
| Current restricted cash and cash equivalents | — | 5,996 | 28,843 | ||||||
| Cash and cash equivalents | 114,391 | 89,047 | 102,714 | ||||||
| Total current assets | 804,274 | 707,459 | 657,238 | ||||||
| Total assets | $ | 1,525,057 | $ | 1,420,315 | $ | 1,347,145 | |||
| EQUITY AND LIABILITIES | |||||||||
| Equity | $ | 335,068 | $ | 281,910 | $ | 365,719 | |||
| Non-current liabilities | |||||||||
| Deferred income | 895 | 16,275 | 620 | ||||||
| Provisions | 60,958 | 98,607 | 108,487 | ||||||
| Bank borrowings | 3,670 | 3,998 | 5,277 | ||||||
| Lease liabilities | 9,968 | 11,199 | 13,994 | ||||||
| Debt instruments | 404,938 | 405,171 | 346,620 | ||||||
| Other financial liabilities | 36,843 | 37,630 | 29,094 | ||||||
| Other non-current liabilities | 37,506 | 13,035 | 16,767 | ||||||
| Deferred tax liabilities | 25,145 | 22,868 | 27,781 | ||||||
| Total non-current liabilities | 579,923 | 608,783 | 548,640 | ||||||
| Current liabilities | |||||||||
| Provisions | 137,625 | 109,552 | 55,296 | ||||||
| Bank borrowings | 95,297 | 86,262 | 102,330 | ||||||
| Lease liabilities | 8,390 | 9,255 | 8,542 | ||||||
| Debt instruments | 35,359 | 25,822 | 10,888 | ||||||
| Other financial liabilities | 24,087 | 24,155 | 34,802 | ||||||
| Payables to related parties | 9,545 | 9,079 | 3,196 | ||||||
| Trade and other payables | 206,000 | 194,074 | 149,201 | ||||||
| Current income tax liabilities | 1,775 | 1,464 | 2,538 | ||||||
| Other current liabilities | 91,988 | 69,959 | 65,993 | ||||||
| Total current liabilities | 610,066 | 529,622 | 432,786 | ||||||
| Total equity and liabilities | $ | 1,525,057 | $ | 1,420,315 | $ | 1,347,145 | |||
| Ferroglobe PLC and Subsidiaries Unaudited Condensed Consolidated Statement of Cash Flows | ||||||||||||||||||||
| Quarter Ended | Quarter Ended | Quarter Ended | Year Ended | Year Ended | ||||||||||||||||
| December 31, 2021 | September 30, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | ||||||||||||||||
| Cash flows from operating activities: | ||||||||||||||||||||
| Profit (loss) for the period | $ | 65,078 | $ | (97,619 | ) | $ | (139,831 | ) | $ | (100,326 | ) | $ | (249,758 | ) | ||||||
| Adjustments to reconcile net (loss) profit to net cash used by operating activities: | ||||||||||||||||||||
| Income tax (benefit) expense | (2,789 | ) | (680 | ) | 36,185 | (4,562 | ) | 21,939 | ||||||||||||
| Depreciation and amortization charges, operating allowances and write-downs | 24,549 | 23,971 | 25,538 | 97,328 | 108,189 | |||||||||||||||
| Net finance expense | 12,445 | 103,379 | 19,630 | 142,865 | 66,791 | |||||||||||||||
| Financial derivatives loss (gain) | — | — | — | — | (3,168 | ) | ||||||||||||||
| Exchange differences | (9,874 | ) | 6,180 | (7,327 | ) | 2,384 | (25,553 | ) | ||||||||||||
| Impairment losses | (2,227 | ) | 363 | 39,074 | (1,867 | ) | 73,344 | |||||||||||||
| Net loss (gain) due to changes in the value of asset | (70 | ) | (424 | ) | 158 | (758 | ) | — | ||||||||||||
| Bargain purchase gain | — | — | — | — | — | |||||||||||||||
| Gain on disposal of discontinued operation | — | — | — | — | 5,399 | |||||||||||||||
| Gain on disposal of non-current assets | — | — | — | (351 | ) | — | ||||||||||||||
| Share-based compensation | 1,464 | 1,269 | 347 | 3,627 | 2,017 | |||||||||||||||
| Other adjustments | (1,080 | ) | 43 | (8,932 | ) | (1,097 | ) | (1,450 | ) | |||||||||||
| Changes in operating assets and liabilities | — | — | ||||||||||||||||||
| (Increase) decrease in inventories | (11,137 | ) | (51,835 | ) | 3,725 | (60,296 | ) | 114,585 | ||||||||||||
| (Increase) decrease in trade receivables | (83,434 | ) | (27,683 | ) | (4,731 | ) | (161,434 | ) | 71,034 | |||||||||||
| Increase (decrease) in trade payables | 12,908 | 9,138 | (20,359 | ) | 64,382 | (55,405 | ) | |||||||||||||
| Other | 18,792 | (1,138 | ) | 60,683 | 22,558 | 14,473 | ||||||||||||||
| Income taxes paid | (2,918 | ) | 359 | (633 | ) | (3,794 | ) | 11,831 | ||||||||||||
| Interest paid | — | — | — | — | — | |||||||||||||||
| Net cash provided (used) by operating activities | 21,707 | (34,677 | ) | 3,527 | (1,341 | ) | 154,268 | |||||||||||||
| Cash flows from investing activities: | ||||||||||||||||||||
| Interest and finance income received | 23 | 21 | 13 | 207 | 630 | |||||||||||||||
| Payments due to investments: | — | |||||||||||||||||||
| Acquisition of subsidiary | — | — | — | — | — | |||||||||||||||
| Other intangible assets | — | — | (2,654 | ) | — | (2,654 | ) | |||||||||||||
| Property, plant and equipment | (10,480 | ) | (8,189 | ) | (11,861 | ) | (27,597 | ) | (30,257 | ) | ||||||||||
| Other | — | — | — | — | — | |||||||||||||||
| Disposals: | — | — | ||||||||||||||||||
| Disposal of subsidiaries | — | — | — | — | — | |||||||||||||||
| Other non-current assets | 1,376 | — | 295 | 1,919 | 341 | |||||||||||||||
| Other | 1,623 | — | — | 1,623 | — | |||||||||||||||
| Net cash (used) provided by investing activities | (7,458 | ) | (8,168 | ) | (14,207 | ) | (23,848 | ) | (31,940 | ) | ||||||||||
| Cash flows from financing activities: | ||||||||||||||||||||
| Dividends paid | — | — | — | — | — | |||||||||||||||
| Payment for debt and equity issuance costs | — | (26,064 | ) | (2,077 | ) | (43,755 | ) | (4,540 | ) | |||||||||||
| Proceeds from equity issuance | — | 40,000 | — | 40,000 | — | |||||||||||||||
| Proceeds from debt issuance | — | 20,000 | 60,000 | |||||||||||||||||
| Increase/(decrease) in bank borrowings: | — | — | ||||||||||||||||||
| Borrowings | 221,587 | 159,861 | 169,571 | 659,083 | 177,593 | |||||||||||||||
| Payments | (210,902 | ) | (158,118 | ) | (161,936 | ) | (671,467 | ) | (235,296 | ) | ||||||||||
| Proceeds from stock option exercises | — | — | — | — | — | |||||||||||||||
| Amounts paid due to leases | (2,617 | ) | (2,602 | ) | (2,973 | ) | (11,232 | ) | (10,315 | ) | ||||||||||
| Other amounts received/(paid) due to financing activities | — | — | (6,471 | ) | — | (2,863 | ) | |||||||||||||
| Payments to acquire or redeem own shares | — | — | — | — | — | |||||||||||||||
| Interest paid | (704 | ) | (1,125 | ) | (827 | ) | (22,177 | ) | (37,912 | ) | ||||||||||
| Net cash (used) provided by financing activities | 7,364 | 31,952 | (4,713 | ) | 10,452 | (113,333 | ) | |||||||||||||
| Total net cash flows for the period | 21,613 | (10,893 | ) | (15,393 | ) | (14,737 | ) | 8,995 | ||||||||||||
| Beginning balance of cash and cash equivalents | 95,043 | 106,089 | 147,425 | 131,557 | 123,175 | |||||||||||||||
| Exchange differences on cash and cash equivalents in foreign currencies | 7 | (153 | ) | (475 | ) | (157 | ) | (613 | ) | |||||||||||
| Ending balance of cash and cash equivalents | $ | 116,663 | $ | 95,043 | $ | 131,557 | $ | 116,663 | $ | 131,557 | ||||||||||
| Cash from continuing operations | 114,391 | 89,047 | 102,714 | 114,391 | 102,714 | |||||||||||||||
| Current/Non-current restricted cash and cash equivalents | 2,272 | 5,996 | 28,843 | 2,272 | 28,843 | |||||||||||||||
| Cash and restricted cash in the statement of financial position | $ | 116,663 | $ | 95,043 | $ | 131,557 | $ | 116,663 | $ | 131,557 | ||||||||||
Adjusted EBITDA ($,000):
| Quarter Ended | Quarter Ended | Quarter Ended | Year Ended | Year Ended | |||||||||||||||
| December 31, 2021 | September 30, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | |||||||||||||||
| Profit (loss) attributable to the parent | $ | 66,320 | $ | (96,596 | ) | $ | (139,050 | ) | $ | (95,746 | ) | $ | (246,339 | ) | |||||
| Profit (loss) for the period from discontinued operations | — | — | — | — | 5,399 | ||||||||||||||
| Profit (loss) attributable to non-controlling interest | (1,242 | ) | (1,023 | ) | (781 | ) | (4,580 | ) | (3,419 | ) | |||||||||
| Income tax (benefit) expense | (2,789 | ) | (680 | ) | 36,185 | (4,562 | ) | 21,939 | |||||||||||
| Net finance expense | 12,445 | 103,379 | 19,630 | 142,865 | 66,791 | ||||||||||||||
| Financial derivatives loss (gain) | — | — | — | — | (3,168 | ) | |||||||||||||
| Exchange differences | (9,874 | ) | 6,180 | (7,327 | ) | 2,384 | (25,553 | ) | |||||||||||
| Depreciation and amortization charges, operating allowances and write-downs | 24,549 | 23,971 | 25,538 | 97,328 | 108,189 | ||||||||||||||
| EBITDA | 89,409 | 35,231 | (65,805 | ) | 137,689 | (76,161 | ) | ||||||||||||
| Impairment | (2,227 | ) | 363 | 39,074 | (1,867 | ) | 73,344 | ||||||||||||
| Restructuring and termination costs | 455 | (9,960 | ) | 3,772 | 27,368 | 3,770 | |||||||||||||
| New strategy implementation | 5,188 | 11,273 | — | 22,700 | — | ||||||||||||||
| Energy: France | — | — | — | — | 70 | ||||||||||||||
| Staff Costs: South Africa | — | — | — | — | 158 | ||||||||||||||
| Other Idling Costs | — | — | — | — | 2,887 | ||||||||||||||
| Pension Plan buyout | — | 685 | — | 685 | |||||||||||||||
| Provision Ithaka | — | — | 28,442 | — | 28,442 | ||||||||||||||
| Adjusted EBITDA | $ | 92,825 | $ | 37,592 | $ | 5,483 | $ | 186,575 | $ | 32,510 | |||||||||
Adjusted profit attributable to Ferroglobe ($,000):
| Quarter Ended | Quarter Ended | Quarter Ended | Year Ended | Year Ended | |||||||||||||||
| December 31, 2021 | September 30, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | |||||||||||||||
| Profit (loss) attributable to the parent | $ | 66,320 | $ | (96,596 | ) | $ | (139,050 | ) | $ | (95,746 | ) | $ | (246,339 | ) | |||||
| Tax rate adjustment | (22,721 | ) | 30,776 | 69,352 | 29,002 | 93,112 | |||||||||||||
| Impairment | (1,514 | ) | 247 | 26,570 | (1,270 | ) | 49,874 | ||||||||||||
| Restructuring and termination costs | 309 | (6,773 | ) | 2,565 | 18,610 | 2,564 | |||||||||||||
| New strategy implementation | 3,528 | 7,666 | — | 15,436 | — | ||||||||||||||
| Energy: France | — | — | — | — | 48 | ||||||||||||||
| Energy: South Africa | — | — | — | — | — | ||||||||||||||
| Staff Costs: South Africa | — | — | — | — | 107 | ||||||||||||||
| Other Idling Costs | — | — | — | — | 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 | $ | 45,922 | $ | (64,214 | ) | $ | (40,563 | ) | $ | (33,502 | ) | $ | (98,671 | ) | |||||
Adjusted diluted profit per share:
| Quarter Ended | Quarter Ended | Quarter Ended | Year Ended | Year Ended | |||||||||||||||
| December 31, 2021 | September 30, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | |||||||||||||||
| Diluted profit (loss) per ordinary share | $ | 0.35 | $ | (0.54 | ) | $ | (0.82 | ) | $ | (0.54 | ) | $ | (1.46 | ) | |||||
| Tax rate adjustment | (0.13 | ) | 0.18 | 0.41 | 0.17 | 0.55 | |||||||||||||
| Impairment | (0.01 | ) | 0.00 | 0.16 | (0.01 | ) | 0.29 | ||||||||||||
| Restructuring and termination costs | 0.00 | (0.04 | ) | 0.02 | 0.11 | 0.02 | |||||||||||||
| New strategy implementation | 0.02 | 0.04 | — | 0.09 | — | ||||||||||||||
| Energy: France | — | — | — | — | 0.00 | ||||||||||||||
| Staff Costs: South Africa | — | — | — | — | 0.00 | ||||||||||||||
| Other Idling Costs | — | — | — | — | 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 | $ | 0.23 | $ | (0.36 | ) | $ | (0.23 | ) | $ | (0.18 | ) | $ | (0.59 | ) | |||||
