Tronox Reports Fourth Quarter and Full Year 2023 Financial Results

Fourth Quarter 2023 Financial Highlights:
*Revenue of $686 million
*Income from operations of $8 million; Net loss attributable to Tronox of $56 million
*Adjusted EBITDA of $94 million; Adjusted EBITDA margin of 13.7% (non-GAAP)
*GAAP diluted loss per share of $0.36; Adjusted diluted loss per share of $0.38 (non-GAAP)
*Free cash flow of $51 million (non-GAAP)

Full Year 2023 Financial Highlights:
*Total revenue of $2,850 million
*Income from operations of $186 million; Net loss attributable to Tronox of $316 million; Adjusted net loss of $24 million (primarily excludes $293 million tax valuation allowance)
*Adjusted EBITDA of $524 million; Adjusted EBITDA margin of 18.4% (non-GAAP)
*GAAP diluted loss per share of $2.02; Adjusted diluted loss per share of $0.15 (non-GAAP)
*Capital expenditures of $261 million
*Returned $89 million to shareholders in the form of dividends

Co-CEO Remarks
“Tronox delivered fourth quarter top-line performance largely in-line with expectations,” commented John D. Romano, co-Chief Executive Officer. “We generated $686 million in revenue in the fourth quarter of 2023, an increase of 6% compared to the prior year. This included a 38% increase in other products due to additional sales of pig iron, as well as opportunistic sales of ilmenite and a portion of a rare earths tailings deposit in South Africa, which is a key part of our funding strategy for our rare earths business. Tronox delivered an Adjusted EBITDA of $94 million in the quarter, $11 million below the bottom end of the previously guided range of $105-$125 million, and an Adjusted EBITDA margin of 13.7%. The lower than expected performance was primarily a result of a delayed restart by our steam supplier at Botlek and higher costs from unanticipated downtime stemming from running at lower rates. We expect to recover at least $15 million in insurance proceeds in 2024 from the downtime at Botlek to cover the costs incurred to continue providing uninterrupted service to our customers while working around the supplier outage. To mitigate operational cost pressures, we continued to proactively manage expenses and cash. Free cash flow was $51 million for the fourth quarter, an improvement of $88 million over the third quarter of 2023.”

Mr. Romano added, “The operating challenges we experienced in the last six months are not indicative of the standard we hold ourselves to at Tronox. We are addressing these challenges head-on in 2024. In 2023, we ran at the lowest utilization rates on record in order to manage inventories and free cash flow in light of lower market demand. As we look ahead into 2024, we are adjusting our operating rates to support the market recovery currently underway. This will set Tronox up to realize a step change in our earnings power after working through the remaining higher cost inventory on the balance sheet.”
more at: https://www.tronox.com/tronox-reports-fourth-quarter-and-full-year-2023-financial-results/

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