Tronox Holdings PLC, the leading integrated manufacturer of titanium dioxide pigment, has released selected preliminary unaudited financial results for the first quarter ending March 31, 2024. The company reported that its revenue for Q1 2024 is expected to be $774 million, marking a notable 9% increase compared to the prior year and a 13% increase compared to the previous quarter. The net loss is anticipated to be $9 million, and the adjusted EBITDA is expected to be $131 million, surpassing the previously issued guidance of $100-$120 million.
The CEO, John D. Romano, highlighted that the company delivered a stronger first quarter than anticipated, with adjusted EBITDA exceeding the guidance. This was attributed to the continued strengthening of the market recovery, as demand outpaced expectations for both titanium dioxide (TiO2) and zircon. TiO2 volumes increased by approximately 18% in the first quarter compared to the fourth quarter, while zircon volumes saw a significant increase of approximately 54% over the same period.
Additionally, the revenue from TiO2 is expected to be $605 million, representing an 8% increase compared to the prior year, driven by an 18% increase in volumes, partially offset by a 10% decrease from average selling prices. Sequentially, this marks a 17% increase in TiO2 revenue, driven by an 18% increase in volumes, partially offset by a 1% decrease from average selling prices.
Zircon revenue is anticipated to be $88 million, reflecting a 22% increase compared to the prior year, driven by a 43% increase in volumes, partially offset by a 21% decrease in average selling prices. Sequentially, the zircon revenue is expected to increase by 54% due to increased volumes.
The revenue from other products is projected to be $81 million, showing a 7% year-over-year increase. However, sequentially, there is a decrease of 26% in other product revenue, primarily due to the opportunistic sales of ilmenite and a portion of a rare earths tailings deposit in South Africa that occurred in the fourth quarter and did not repeat, as expected and communicated last quarter.
Tronox is set to conduct a webcast conference call to discuss the full financial results on Thursday, May 2, 2024, at 8:00 am ET. The company remains confident in its ability to deliver industry-leading results and is well-positioned to continue its participation in the recovery while demonstrating the full capabilities of its vertically integrated portfolio. Following these announcements, the company's shares moved 7.3%, and are now trading at a price of $17.37. If you want to know more, read the company's complete 8-K report here.
