Tronox Holdings PLC, the world's leading integrated manufacturer of titanium dioxide pigment, has reported its financial results for the fourth quarter and full year of 2023. The company's fourth-quarter revenue reached $686 million, with income from operations of $8 million and a net loss attributable to Tronox of $56 million. Adjusted EBITDA for the quarter was $94 million, with a margin of 13.7%. For the full year of 2023, Tronox reported total revenue of $2,850 million, with adjusted EBITDA of $524 million and returned $89 million to shareholders in the form of dividends.
Looking ahead, Tronox expects adjusted EBITDA for the first quarter of 2024 to be in the range of $100-120 million, with anticipated increases in titanium dioxide (TiO2) and zircon volumes compared to the fourth quarter of 2023. The company also expects TiO2 pricing to remain relatively flat compared to the prior quarter.
John D. Romano, Co-Chief Executive Officer of Tronox, commented on the company's performance, saying, "Tronox delivered fourth quarter top-line performance largely in-line with expectations." He acknowledged the challenges faced in 2023, particularly operational issues, and expressed confidence in addressing these challenges in 2024.
Romano also highlighted the company's focus on growth opportunities, particularly in the rare earths space, and the expectation of a market recovery in 2024. He added, "We are expecting first-quarter adjusted EBITDA to be $100-120 million and adjusted EBITDA margins to be in the mid-teens range."
In terms of financial results, Tronox's fourth-quarter revenue increased by 6% year-over-year, primarily driven by higher sales volumes of TiO2 and other products. However, the net loss attributable to Tronox in the quarter was $56 million, or a loss of $0.36 per diluted share. Adjusted net loss attributable to Tronox was $60 million, or a loss of $0.38 per diluted share.
On the sustainability front, Tronox is nearing the conversion of 40% of its power in South Africa to power from a significant solar project, which is expected to significantly reduce total carbon emissions globally and mark the first significant step for Tronox on its journey to net-zero emissions by 2050.
The company's shares have moved 4.6%, and are now trading at a price of $14.06.
Tronox's full 8-K submission is available here.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $1,819 | $2,642 | $2,758 | $3,572 | $3,454 | $2,813 |
| Gross Margins | 27% | 18% | 23% | 25% | 24% | 17% |
| Net Margins | 0% | -4% | 35% | 8% | 14% | -10% |
| Net Income (M) | -$7 | -$109 | $969 | $286 | $497 | -$275 |
| Net Interest Expense (M) | $193 | $201 | $189 | $157 | $125 | $146 |
| Depreciation & Amort. (M) | $195 | $280 | $304 | $297 | $269 | $274 |
| Diluted Shares (M) | 123 | 140 | 145 | 158 | 157 | 157 |
| Earnings Per Share | -$0.06 | -$0.78 | $6.69 | $1.81 | $3.16 | -$1.74 |
| EPS Growth | n/a | -1200.0% | 957.69% | -72.94% | 74.59% | -155.06% |
| Avg. Price | $14.38 | $9.48 | $8.05 | $19.83 | $18.9 | $13.44 |
| P/E Ratio | -239.67 | -18.59 | 1.19 | 10.55 | 5.89 | -7.77 |
| Free Cash Flow (M) | -$4 | -$23 | $4 | $468 | $170 | -$2 |
| CAPEX (M) | $174 | $198 | $195 | $272 | $428 | $316 |
| EV / EBITDA | 9.75 | 10.28 | 6.59 | 5.92 | 7.23 | 9.46 |
| Total Debt (M) | $3,139 | $2,988 | $3,263 | $2,558 | $2,514 | $2,788 |
| Net Debt / EBITDA | 5.33 | 7.16 | 4.6 | 2.67 | 3.23 | 5.21 |
| Current Ratio | 8.48 | 2.95 | 3.14 | 2.49 | 2.31 | 3.32 |
