Company: CENX
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000949157-25-000035
Chunk: 63

Company: CENTURY ALUMINUM CO
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 2
Chunk 63
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 heating demand. European energy markets impact our Vlissingen facility in the Netherlands, which utilizes natural gas to produce anodes used in our Grundartangi operations. The energy market in Europe has historically been dependent upon imported natural gas from Russia, and the significant reduction in Russian gas supply to Europe has resulted in increased uncertainty with respect to the price and availability of natural gas. Adverse changes to European natural gas prices or availability could adversely affect operations at Vlissingen, and in turn operations at Grundartangi, if we are not able to source an alternative supply of anodes.

The pricing under our alumina supply contracts varies from contract to contract. A major portion of our alumina requirements is indexed to the price of primary aluminum, which provides a natural hedge to one of our largest production costs. We also purchase alumina based on a published alumina index and at fixed prices. The alumina price is influenced by a number of factors, including global supply-demand balance, natural disasters and weather events, and other factors outside of our control. Additionally, with our acquisition of a 55% interest in Jamalco, we secured a predictable, long-term supply of alumina and achieved increased transparency and control of our supply chain. In general, our results reflect the market cost of alumina on an approximately three-month lag reflecting the terms of our alumina contracts and inventory levels.

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Quarter ended Three months endedSequential Year-to-dateMarch 31, 2025December 31, 2024March 31, 2025March 31, 2024Net salesRelated parties$378.7 $340.8 $378.7 $315.0 Other customers255.2 290.1 255.2 174.5 Total net sales633.9 630.9 633.9 489.5 Gross profit60.6 66.3 60.6 16.5 Selling, general and administrative expenses12.5 14.8 12.5 14.1 Net (loss) gain on forward and derivative contracts - nonaffiliates(5.4)2.7 (5.4)3.4 Net (loss) gain on forward and derivative contracts - affiliates— (0.1)— 4.0 Bargain purchase gain— — — 245.9 Income tax expense(1.6)(0.2)(1.6)(0.5)