World’s Largest Lithium Producer Albemarle Gains on Record Revenue Boosted by Ketjen Sales

Shares of Albemarle ( ALB ) gained close to 3% Thursday after the world’s biggest lithium producer reported record annual revenue boosted by gains in new subsidiary Ketjen and moved to cut costs.

The company posted fourth quarter earnings per share (EPS) of $1.85 on revenue of $2.36 billion, down 10.1% from a year earlier. Both beat estimates.

Albemarle reported a 45% jump in sales at its wholly-owned subsidiary, Ketjen, which it launched in January of 2023. Ketjen provides advanced catalyst solutions for the petrochemical, refining, and specialty chemicals industries. It brought in sales of $342 million in the period.

The company also reported volumes at its Energy Storage unit soared 35%, boosted primarily by the expansion of its La Negra plant in Chile, and “higher tolling volumes to meet customer demands.” It said it anticipates full-year volumes rising 10% to 20%.

For the full year of 2023, the company’s revenue grew 31% from 2022 to a record $9.62 billion.

CEO Kent Masters said that Albemarle is “taking actions to enhance our financial flexibility, while advancing near-term growth and preserving future opportunities to create value.”

Albemarle has been hurt by a slump in demand for electric vehicles (EVs) and lower lithium prices . In January, the company announced plans to slash costs, including reducing spending on capital projects and contracted services, as well as laying off workers.

Shares of Albemarle finished 2.7% higher at $117.50 per share Thursday. Despite Thursday’s gains, they’ve lost more than 58% of their value over the past year.