Booming Alumina and Aluminum Prices Drive Alcoa Q3 Results

SEATTLE (Scrap Monster): Pittsburgh-based Alcoa Corporation announced robust third quarter 2020 results. The company reported strong operating and safety performance, even during the pandemic. The quarterly results reflected the improved pricing for alumina and aluminum. Meantime, the mines and refineries operated by the company set new production records during the quarter.

According to company press release, the third party alumina shipments increased by approximately 6% over the sequential quarter. On the other hand, curtailment of the Intalco smelter led to 3% drop in third-party aluminum shipments during Q3 this year.

ALSO READ:

Alcoa Announces Curtailment and Collective Dismissal at Smelter

Alcoa Extended Consultation Period at San Ciprian Aluminum Plant

The revenues surged higher by 10% over the prior quarter to $2.4 billion, mainly driven by higher alumina and aluminum prices along with higher alumina shipments. The improved demand from automotive sector boosted the sales volume of value-added products by almost 11%.

Alcoa reported net loss of $49 million, or $0.26 per share, compared with net loss of $197 million, or $1.06 per share, in the second quarter of 2020. The adjusted EBITDA excluding special items was $284 million, sharply higher by 54% quarter-on-quarter. The company ended the quarter with cash on hand of $1.74 billion.

The company is on pace to deliver nearly $900 million in combined cash actions in 2020, said Roy Harvey, President and CEO, Alcoa.