Albemarle Corporation


SKU: ALB Category:


This is our first report on Albemarle Corporation, one of the largest producers of lithium, bromine, and other related specialty chemicals across the globe. The company had a mixed quarterly result and failed to meet the revenue expectations of Wall Street but managed an earnings beat. It continues to benefit from the demand for lithium-ion batteries that are driven by the energy transition. The strong performance for its lithium segment was driven by higher volumes and higher realized pricing. Also, growth in bromine has driven a robust third quarter. Albemarle is realigning its core bromine and lithium businesses to energy specialties and storage and expects it to be effective next month. At Kings Mountains mine, the studies continue to progress positively. It recently received a $150 million grant from the United States Department of Energy to partially fund the construction of one lithium concentrator. In October, the company finished the acquisition of China’s Qinzhou lithium conversion facility. The mechanical completion of Australia’s Kemerton 2 lithium conversion project is on the track that can double its lithium conversion capacity. Also, the strategic evaluation of the catalyst business has been completed. In the quarter, the company extended and upsized its revolving credit facility to reflect its larger scale, which positioned it well in case of market turbulence. We initiate coverage on the stock of Albemarle Corporation with a ‘Hold’ rating.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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