(Kitco News) - On Tuesday, lithium producer Livent (NYSE: LTHM) announced that its fourth quarter 2022 revenue was $219.4 million, down 5% and up 79% from the third quarter of 2022 and the prior year's quarter, respectively.
The company said that reported GAAP net income was $82.7 million in Q4 2022, compared to $77.6 million and $7.5 million in the previous quarter and the prior year's quarter, respectively, or 39 cents per diluted share.
Adjusted EBITDA was $107.6 million, 3% below the previous quarter and nearly four times higher than the prior year's quarter, and adjusted earnings per diluted share were 40 cents.
For the full year 2022, Livent reported revenue of $813.2 million, nearly double 2021 results. GAAP net income was $273.5 million, or $1.36 per diluted share, compared to $0.6 million in 2021.
Full year Adjusted EBITDA was $366.7 million, over five times higher than the prior year, and adjusted earnings per share were $1.40 per diluted share.
“This significant improvement was a result of higher average realized prices across all lithium products,” the company said.
"Livent had another strong performance in the fourth quarter and finished the full year 2022 with record financial results," said Paul Graves, president and chief executive officer of Livent. "We expect to generate higher profitability in 2023 as we build on this performance. This is driven by further expected increases in average realized pricing across our lithium products, as well as higher sales volumes with the first phase of our Argentina expansion coming online during the year."
Livent expects a "meaningful improvement" in 2023 financial performance following record 2022 results. For the full year 2023, Livent projects revenue to be in the range of $1,000 million to $1,100 million and Adjusted EBITDA to be in the range of $510 million to $580 million, representing growth of roughly 30% and 50%, respectively, at the midpoints versus the prior year.
This guidance is based on 20% higher total volumes sold on an LCE basis versus 2022. Additionally, the company expects to achieve higher average realized pricing across its portfolio of lithium products, partially offset by higher anticipated costs.
Livent 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 ~1,350 full-time, part-time, temporary, and contract employees.
The company’s primary products, namely battery-grade lithium hydroxide, lithium carbonate, butyllithium and high purity lithium metal are critical inputs used in various performance applications.
