Albemarle (ALB) Raises FY22 Guidance

Albemarle Corporation (NYSE: ALB), a leader in the global specialty chemicals industry, today announced improved full-year 2022 guidance primarily due to the completion of additional lithium contract renegotiations following the company's Q1 2022 earnings release on May 4, 2022.

"Over the past 12 months, we've made significant progress in renegotiating more variable-priced contracts with our lithium customers. Implementation of these contracts is a key driver of the expected year-over-year improvement in our financial results," said Albemarle CEO Kent Masters. "We now expect full-year 2022 adjusted EBITDA to be up more than 160% from prior year based on favorable market dynamics for our Lithium and Bromine businesses. Both businesses are critical for transitioning to greener energy and advancing electrification and digitalization."

Full-year 2022 corporate financial results reflect additional index-referenced, variable-price contracts for battery grade lithium sales. Higher net cash from operations guidance incorporates higher earnings partially offset by increased working capital. Outlook for the Bromine and Catalysts businesses remains unchanged.

(Consensus sees FY22 EPS of $10.88 on revenue of $5.44 billion)

Lithium adjusted EBITDA for the full year 2022 is now expected to grow approximately 300% year over year, up from previous outlook. Average realized pricing is now expected to be up approximately 140% year over year resulting from the implementation of index-referenced, variable-price contracts and increased market pricing. Full-year 2022 volume is expected to be up 20-30% year over year primarily due to new capacity coming online (unchanged from previous outlook).

Revised Lithium outlook assumes the company's updated second-quarter 2022 realized selling price remains constant for the remainder of the year. There is potential upside if market pricing remains at historically strong levels or if current fixed contract renegotiations result in additional index-referenced, variable-price contracts. There is potential downside in the event of a material correction in lithium market pricing or potential volume shortfalls (e.g., delays in acquisitions or expansion projects).

Investor Conferences

Albemarle regularly attends investor relations events as listed on our website. As previously announced, Kent Masters, chief executive officer, and Scott Tozier, chief financial officer, will present at the 2022 Jefferies Renewable Energy Conference in London on May 24, 2022, at 11:00 am ET. The presentation materials and webcast will be accessible at the time of the event through the Events and Presentations page on Albemarle's website at http://investors.albemarle.com. A webcast replay will be posted to the company's website immediately following the conclusion of the event.

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