Lithium producer Livent posts net income of $78M in third quarter on strong customer demand

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(Kitco News) - On Tuesday, lithium producer Livent (NYSE: LTHM) announced that its Q3 2022 revenue was $231.6 million, up 6% and 124% from the second quarter of 2022 and the prior year, respectively.

The company’s reported GAAP net income was $77.6 million in Q3 2022, 29% higher than the previous quarter, and 37 cents per diluted share. Adjusted EBITDA was $110.8 million, 17% above the previous quarter and over seven times higher than the prior year, and adjusted earnings per diluted share were 41 cents.

Livent noted that continued strength in lithium market conditions and in customer demand throughout the third quarter supported higher sequential volumes and favorable product mix.

The company said that as planned, its 5,000 metric ton expansion of lithium hydroxide in Bessemer City was mechanically completed in the third quarter and is in the early stages of producing and qualifying product with customers.

Importantly, the company pointed out it remains on schedule to deliver on all its announced capacity expansions.

Livent also reported it has narrowed the ranges of its guidance for 2022 financial performance and increased the midpoint of its projected results for adjusted EBITDA, underpinned by expectations for slightly higher realized pricing.

For the full year, Livent now projects revenue to be in the range of $815 million to $845 million and adjusted EBITDA to be in the range of $350 million to $370 million.

"Lithium demand has remained robust despite some near-term supply chain disruptions and global macro concerns," stated Paul Graves, president and chief executive officer of Livent. "Published lithium prices moved higher in the third quarter amid continued favorable market conditions. Livent achieved higher realized prices and delivered increased volumes to customers."

Livent indicated it is a leading vertically integrated pure-play producer of low-cost lithium, selling to leading electric vehicle OEMs and battery manufacturers worldwide. The company operates 7 manufacturing and sourcing sites across 4 continents supported by ~1,100 employees.