10 things we learnt from GE Major GrafTech's Q2 CY20 results
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- GrafTech's net sales in Q2 CY20 stood at 93 million against 122 million in Q1 CY20 whereas EBITDA stood at USD 151 million in Q2.
- Company's sales volume for Jan-Jun'20 stood at 65,000 tonne against 90,000 tonne in corresponding period of previous year and net sales stood at $599 million for six months ending in Jun'20 against $955 million in same period last year.
- Utlisiation rates of steel mills in U.S. have fallen to 59% in Q2 CY20 (Apr-Jun) against 80% in Q1 (Jan-Mar'20).
- Customer destocking efforts for GE have been reduced as slower mills' operating rates have impacted electrodes consumption.
- The company expects soft demand for GE in 2020 and anticipates its LTA sales for 2020 to be in the range of 100,000 to 115,000 tonne.
- The company has received 35 force majeure claims from their customers in Q2 against 20 claims in Q1 CY20 and some of the customers are struggling to take the committed volume under LTAs (Long term agreements).
- The company produced 33,000 tonne of GE in Q2 CY20, similar to previous quarter and its capacity utilisation rate stood at 65%.
- Exports stood at 31,000 tonne out of which LTAs accounted for 26,000 tonne. During Jan-Jun'20, company's LTA deliveries stood at 55,000 tonne.
- Graftech's spot sales stood at 5,000 tonne in Q2 and the average realized price for the same stood at $5,500/t against $6,500/t in Q1 CY20.
- In terms of raw material, the company was able to meet majority of its needle coke requirement from its Seadrfit facility and as the volume of electrodes manufactured was less, a significant cost incurred in buying needle coke from third party has been saved.
