Albemarle boosts profit forecast on surging lithium demand, shares jump (updated)

PMET Resources

02/08/2023 22:10

(Adds earnings details, comparison, stock movement, background)
       Aug 2 (Reuters) - Albemarle Corp  ALB.N , the world's
largest producer of lithium, raised its 2023 profit forecast on
Wednesday after reporting better-than-expected quarterly
results, and it shares jumped as the company cited rising global
appetite for the metal used to make electric vehicle batteries. 
    Shares of the Charlotte, North Carolina-based company surged
4.5% to $212 in after-hours trading. 
    Albemarle said it expects lithium demand to increase further
in coming months due to the push to electrify much of the
world's economy. The company produces the metal in Chile,
Australia and China, and is the rapidly expanding inside the
United States, where it has long been the only lithium producer.
        "We remain confident in the long-term outlook for our
businesses," CEO Kent Masters said in a press release.
  
        Tesla  TSLA.O , Ford  F.N  and many other automakers buy
lithium from Albemarle.    
    The company posted net income for the second quarter ended
June 30 of $650 million, or $5.52 per share, compared with
$406.8 million, or $3.46 per share, in the year-ago period.
    Excluding one-time items, Albemarle earned $7.33 per share.
By that measure, analysts expected earnings of $4.44 per share,
according to IBES data from Refinitiv.
        Sales in the company's Energy Storage division, which
sells lithium, more than doubled to $1.76 billion. For the year,
Albemarle expects the price at which it sells its lithium to
jump nearly 30% from 2022 levels.
  
        For the full year, Albemarle raised its forecast for
adjusted earnings to a range of $25 to $29.50 per share. The
company previously had expected its adjusted earnings for the
year to come in at between $20.75 and $25.75 per share.
Albemarle also raised its revenue forecast and its 2023 budget. 
  
    The company plans to hold a conference call with investors
to discuss the quarterly results on Thursday.
        Earlier this week, Albemarle said it would pay $82.6
million for a 
    5% stake
     in Canada-based lithium developer Patriot Battery Metals
 PMET.V .

 (Reporting by Ernest Scheyder; editing by Jonathan Oatis and
David Gregorio)
 ((ernest.scheyder@thomsonreuters.com; Twitter: @ErnestScheyder;
+1-713-210-8512; Reuters Messaging:
ernest.scheyder.thomsonreuters.com@reuters.net))