Ferroglobe PLC, a UK based Metals and Mining company, announced the results for the first quarter of 2020. The company reported a net loss of $49.1 million or $0.28 per share on diluted basis while the Q1 2020 net loss was $37.7 million, or $0.22 per share on after adjusted basis.
The COVID-19 pandemic since January 2020 has spread to various abbacies where the Ferroglobe does business. To tackle the evolving situation, and consequent emerging risk the Company implemented a coronavirus crisis management team. This team meets regularly to ensure the company and its subsidiaries adopt appropriate measures to shield its employees and ensure the continuity of the business.
The company says it is difficult to figure out the exact amount of impact the COVID-19 pandemic has. The day-to-day business operations are not being materially affected. However, they have evaluated and have plans to keep assessing how changing demand from its customer base and evolving sales price affect the Company’s business and results during the next 12 months.
The company reported sales of $311.2 million and Adjusted EBITDA of $17.6 million for the 1st quarter fo year 2020. Q1 sales decreased about 17% as compared to $376.6 million in Q4 2019, and declined about 30% as compared to $447.4 million in Q1 2019. The company’s net loss has decreased to $49.1 million as compared to $(73.3) million in Q4 2019, but increased about 7% as compared $28.6 million in Q1 2019. The company succeeded to reduce Gross debt to $443 million at the end of Q1 2020 as compared to $481 million at the end of Q4 2019.
Ferroglobe reported its European accounts receivable securitization program remediated on February 6, 2020, which provided an increase in the availability of fund. It achieved the continued improvement in working capital during the quarter by $126 million, with inventory levels decreasing by $67 million due to operational changes to the global production platform.
The company’s Chief Executive Ocer Marco Levi said, “I am pleased with the team’s execution given the challenges across our organization resulting from the COVID-19 pandemic. First and foremost, we took extreme measures to ensure the health and safety of our employees globally, and I am proud to report that the quick decisions and actions of the team have resulted in healthy worksites and enabled us to operate with minimal disruption.”