Alcoa Full-Year Report 2023
Highlights
- Alumina production decreased 13 percent annually primarily due to lower grade bauxite at the Australia refineries and partial curtailments at the San Ciprián refinery in Spain and the Kwinana refinery in Australia.
- In the Alumina segment, third-party shipments of alumina decreased 5 percent primarily due to reduced production at the Australia refineries and the San Ciprián refinery, partially offset by increased trading opportunities.
- The Company’s total third-party revenue decreased 15 percent to $10.6 billion, driven primarily by lower average realized third-party prices for aluminum and alumina. Annually, the average realized third-party price of alumina decreased 7 percent to $358 per metric ton and the average realized third-party price of aluminum decreased 18 percent to $2,828 per metric ton.
- Net loss attributable to Alcoa Corporation was $651 million, or $3.65 per share, compared with the prior year’s net loss of $123 million, or $0.68 per share. The results reflect lower aluminum and alumina prices and higher production costs. In addition to the restructuring charges noted below, the 2023 results include a net charge to tax expense of $94 million discussed above.
- Adjusted net loss was $405 million, or $2.27 per share, excluding the impact from net special items of $246 million.
- Notable special items include charges of $117 million related to the permanent closure of the Intalco smelter, $53 million for certain employee obligations related to the February 2023 viability agreement for the San Ciprián smelter.
- Adjusted EBITDA excluding special itemsdecreased 76 percent sequentially to $536 million, mainly attributable to year-over-year lower average realized prices for aluminum and alumina, as well as higher production costs primarily in the Alumina segment.
Alcoa ended 2023 with a cash balance of $944 million. Cash provided from operations was $91 million. Cash provided from financing activities was $57 million, primarily related to $158 million of net contributions from noncontrolling interest and $55 million of net short-term borrowings, partially offset by $72 million in cash dividends on common stock, $52 million for site separation expenditures related to the 2021 sale of the Warrick Rolling Mill in Indiana and $34 million for payments related to tax withholding on stock-based compensation awards.