Ferroglobe Reports Results for Fourth Quarter and Full Year 2018

Ferroglobe PLC (NASDAQ: GSM) (“Ferroglobe”, the “Company”, or the “Parent”), the world’s leading producer of silicon metal, and a leading silicon- and manganese-based specialty alloys producer, today announced results for the fourth quarter and full year 2018. 

Q4 2018 Earnings Highlights

“Volumes were strong in Q4, compensating for some of the weakness we experienced at the end of Q3, while pricing in our main products weakened further as a result of challenging market conditions,” said Pedro Larrea, CEO of Ferroglobe. “Our cash generating initiatives in the second half of 2018 delivered a significantly improved balance sheet at the end of the year.”

In Q4 2018, Ferroglobe posted a net loss of $(15.2) million, or $(0.08) per share. On an adjusted basis, Q4 2018 net loss was $(7.0) million, or $(0.05) per share.

Q4 2018 reported EBITDA was $27.1 million, down from $45.0 million in the prior quarter. On an adjusted basis, Q4 2018 EBITDA was $32.1 million, down 28.7% from Q3 2018 adjusted EBITDA of $45.0 million. The Company reported adjusted EBITDA margin of 5.3% for Q4 2018, compared to adjusted EBITDA margin of 8.5% for Q3 2018.

Full Year 2018 Earnings Highlights

For Full Year 2018, Ferroglobe posted a net profit of $83.5 million, or $0.52 per share. On an adjusted basis, Full Year 2018 net profit was $52.1 million, or $0.28 per share.

For the Full Year 2018 reported EBITDA was $296.5 million, up 105.6% from $144.2 million in the prior year. 2018 adjusted EBITDA was $253.1 million, up 37.1% from $184.5 million in 2017. The Company reported adjusted EBITDA margins of 11.1% for Full Year 2018, compared to adjusted EBITDA margins of 10.6% for 2017.

	Quarter Ended			Quarter Ended			Quarter Ended			Year Ended			Year Ended
$,000 (Unaudited)	December 31, 2018			September 30, 2018			December 31, 2017			December 31, 2018			December 31, 2017
Revenue	$	603,519		$	526,838		$	468,218		$	2,274,038		$	1,741,693
Net (loss) profit	$	(15,244)		$	(2,916)		$	6,280		$	83,484		$	(5,822)
Diluted EPS	$	(0.08)		$	(0.01)		$	0.04		$	0.52		$	(0.00)
Adjusted net (loss) income attributable to the parent	$	(7,006)		$	77		$	8,056		$	52,050		$	18,516
Adjusted diluted EPS	$	(0.05)		$	0.00		$	0.05		$	0.28		$	0.11
Adjusted EBITDA	$	32,111		$	45,042		$	53,670		$	253,053		$	184,533
Adjusted EBITDA margin		5.3%			8.5%			11.5%			11.1%			10.6%

Mr. Larrea continued: “Full year 2018 results are the strongest in Ferroglobe’s history, although our performance in the latter half of the year suffered as a result of deteriorating market conditions. We reacted promptly to this change by optimizing our global production platform while maintaining the flexibility to seize opportunities as the market recovers.  We have curtailed production in our silicon metal and manganese-based alloys businesses. That said, market conditions remain challenging and we continue to look at further measures to control our costs, improve our financial performace and deliver free cash flow.”  

Cash Flow and Balance Sheet

Cash flow generated by our operations during Q4 2018 was $109.2 million, with working capital decreasing by $84.1 million. Net debt was $428.8 million as of December 31, 2018, significantly down from $510.9 million as of September 30, 2018.  Mr. Larrea added: “We have delivered on all our cash generating initiatives in the second half of 2018 and achieved a greater than expected net debt reduction. Through this effort, we have been able to navigate a complex 2018.  We added significant new assets in the first half and then encountered deteriorating market conditions in the second half and still ended the year overall with nearly breakeven free cash flow, which includes all cash flows used in investing activities.”   

On February 22, 2019, Ferroglobe obtained the consent of its lenders for an amendment to its revolving credit facility that affords the Company additional flexibility under its financial maintenance covenants in the coming quarters.  The amendment suspends the existing covenant to maintain a maximum total net leverage ratio during an interim period beginning with the first quarter of 2019 through the first fiscal quarter of 2020, and provides a new covenant to maintain a maximum secured net leverage ratio and a new covenant to maintain a minimum cash liquidity level. The new covenants will be in effect only during the interim period, after which the existing covenant to maintain a maximum total net leverage ratio will be reinstated.  The amendment also reduced the aggregate commitments under the revolving credit facility from $250 million to $200 million.

“Our top priority remains focusing on our financial performance and generating cash flow through improvements in operations, reductions in working capital, divestiture of non-core assets, and lowered interest expense,” added Mr. Larrea. “We expect to continue to reduce our net debt through the first half of 2019. The renegotiated terms of our revolving credit facility reinforce the strength of our balance sheet and our ability to face evolving market conditions with confidence.”

Discussion of Fourth Quarter 2018 Results

The Company notes that the financial results presented for the fourth quarter and for full year 2018 are unaudited and may be subsequently adjusted for items including impairment of long-lived assets such as the assets associated with our solar-grade silicon project. Any subsequent changes, if required, will be reflected in our audited Annual Report on Form 20-F.

Sales

Sales for the three months ended December 31, 2018 of $603.5 million were 28.9% higher than sales of $468.2 million for the three months ended December 31, 2017. Total shipments in the fourth quarter of 2018 were up 42.1% and the average selling price was down 10.9% versus the same period in the prior year. Sales for the full year 2018 of $2,274 million were up 30.6% compared to $1,742 million for 2017. For the full year, total shipments were up 23.3% and the average selling price was up 5.9% compared with 2017. Sales for the fourth quarter of 2018 and the full year benefited from the Company’s manganese-based alloy plants in Mo i Rana (Norway) and Dunkirk (France), acquired on February 1, 2018, albeit partially offset by lower average selling prices. 

Sales Prices & Volumes By Product

		Quarter Ended			Quarter Ended					Quarter Ended					Year Ended			Year Ended
		December 31,2018			September 30,2018			Change		December 31,2017			Change		December 31,2018			December 31,2017			Change
Shipments in metric tons:
Silicon Metal			93,364			81,686		14.3%			83,785		11.4%			352,578			325,884		8.2%
Silicon-based Alloys			81,197			75,964		6.9%			70,399		15.3%			311,703			283,021		10.1%
Manganese-based Alloys			147,445			98,280		50.0%			72,374		103.7%			424,358			274,119		54.8%
Total shipments*			322,006			255,930		25.8%			226,558		42.1%			1,088,639			883,024		23.3%
Average selling price ($/MT):
Silicon Metal		$	2,429		$	2,636		-7.9%		$	2,440		-0.5%		$	2,647		$	2,270		16.6%
Silicon-based Alloys		$	1,719		$	1,802		-4.6%		$	1,741		-1.3%		$	1,845		$	1,608		14.7%
Manganese-based Alloys		$	1,158		$	1,211		-4.4%		$	1,346		-14.0%		$	1,244		$	1,327		-6.3%
Total*		$	1,668		$	1,841		-9.4%		$	1,873		-10.9%		$	1,870		$	1,765		5.9%
Average selling price ($/lb.):
Silicon Metal		$	1.10		$	1.20		-7.9%		$	1.11		-0.5%		$	1.20		$	1.03		16.6%
Silicon-based Alloys		$	0.78		$	0.82		-4.6%		$	0.79		-1.3%		$	0.84		$	0.73		14.7%
Manganese-based Alloys		$	0.53		$	0.55		-4.4%		$	0.61		-14.0%		$	0.56		$	0.60		-6.3%
Total*		$	0.76		$	0.84		-9.4%		$	0.85		-10.9%		$	0.85		$	0.80		5.9%
* Excludes by-products and other

During Q4 2018, the average selling prices decreased between 4% and 8% for all of our products quarter-over-quarter, reflecting weak overall market conditions. Average selling prices for 2018 are well above 2017 for silicon metal and silicon-based alloys. Manganese-based alloys prices in 2018 have deteriorated significantly despite persistently high ore prices.  We expect the relationship between market prices of manganese-based alloys and ore prices to revert to its historical correlation over time. 

Sales volumes in Q4 significantly increased as compared to Q3, partly because of delayed shipments at the end of Q3.  Activity in full year 2018 has shown healthy growth overall, with volume increases over 2017 of 8% to 10% in silicon metal and silicon-based alloys, respectively. A year-to-year comparison of manganese-based alloys volumes is not meaningful in light of the Company’s acquisition of new manganese-based alloy assets in early 2018.

Cost of Sales

Cost of sales was $445.8 million for the three months ended December 31, 2018, an increase from $284.6 million for the three months ended December 31, 2017, primarily driven by higher volumes and higher input costs for raw materials and energy. Cost of sales was $1,444.8 million for the full year 2018, an increase from $1,043.4 million for the same period in 2017, primarily driven by higher sales and increases in energy and raw material prices, particularly the prices of manganese ore and electrodes.

Staff Costs and Other Operating Expenses

Staff costs and other operating expenses for the three months and full year ended December 31, 2018 were $154.4 million and $625.0 million, respectively compared to $142.2 million and $541.9 million for the corresponding periods in 2017. The increases were primarily related to labour costs for the newly acquired manganese-based alloy plants.

Operating (Loss) Profit

Operating (loss) profit was $(3.0) million and $177.4 million, respectively for the three months and full year periods ended December 31, 2018, compared to an operating loss of $(1.6) million and an operating profit of $39.7 million for the three months and full year ended December 31, 2017. Included in the full year 2018 was a $37.3 million bargain purchase gain related to the Company’s purchase of manganese-based alloy plants mentioned above.  The bargain purchase gain was reduced by $7.4 million in the forth quarter of 2018 as a result of purchase price accounting adjustments.

Net (Loss) Profit Attributable to the Parent

As a result of the various factors described above, we reported a net (loss) attributable to the Parent of $(13.3) million, or $(0.08) per share, for the three months ended December 31, 2018 compared to a net profit attributable to the Parent of $6.4 million, or $0.04 for the three months ended December 31, 2017. We reported net income attributable to the Parent of $89.5 million, or $0.52 per share, for the full year 2018, compared to a net loss of $(0.7) million, or ($0.00) per share for 2017. 

Adjusted EBITDA

Adjusted EBITDA of $32.1 million, or 5.3% of sales, for the three months ended December 31, 2018 was lower than adjusted EBITDA of $53.7 million, or 11.5% of sales, for the three months ended December 31, 2017. Adjusted EBITDA of $253.1 million, or 11.1% of sales for the full year 2018, was higher than adjusted EBITDA of $184.5 million, or 10.6% of sales for 2017. 

Other recent developments

Phillip Murnane has taken a temporary medical leave of absence from his duties as Chief Financial Officer and we expect him to be on leave for the next few weeks. During Phil’s absence, José M. Calvo-Sotelo (Deputy CFO and EVP - Corporate Development of Ferroglobe and former CFO of Grupo FerroAtlántica), is assuming the duties of the CFO. 

Conference Call

Ferroglobe management will review the fourth quarter and full year results of 2018 during a conference call at 9:00 a.m. Eastern Time on February 26, 2019.

The dial-in number for participants in the United States is 877‑293‑5491 (conference ID 4581015). International callers should dial +1 914‑495‑8526 (conference ID 4581015). Please dial in at least five minutes prior to the call to register. The call may also be accessed via an audio webcast available at https://edge.media-server.com/m6/p/sjakzohb.  

About Ferroglobe

Ferroglobe is one of the world’s leading suppliers of silicon metal, silicon-based specialty alloys, and ferroalloys serving a customer base across the globe in dynamic and fast-growing end markets, such as solar, automotive, consumer products, construction and energy. The Company is based in London. For more information, visit http://investor.ferroglobe.com.

Forward-Looking Statements

This release contains “forward-looking statements” within the meaning of U.S. securities laws. Forward-looking statements are not historical facts but are based on certain assumptions of management and describe the Company’s future plans, strategies and expectations. Forward-looking statements often use forward-looking terminology, including words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “forecast”, “guidance”, “intends”, “likely”, “may”, “plan”, “potential”, “predicts”, “seek”, “will” and words of similar meaning or the negative thereof.

Forward-looking statements contained in this press release are based on information currently available to the Company and assumptions that management believe to be reasonable, but are inherently uncertain. As a result, Ferroglobe’s actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements, which are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company’s control.

Forward-looking financial information and other metrics presented herein represent the Company’s goals and are not intended as guidance or projections for the periods referenced herein or any future periods.

All information in this press release is as of the date of its release. Ferroglobe does not undertake any obligation to update publicly any of the forward-looking statements contained herein to reflect new information, events or circumstances arising after the date of this press release. You should not place undue reliance on any forward-looking statements, which are made only as of the date of this press release.

Non-IFRS Measures

EBITDA, adjusted EBITDA, adjusted (loss) profit per ordinary share, and adjusted (loss) profit are non-IFRS financial metrics that, we believe, are pertinent measures of Ferroglobe’s success.

Ferroglobe has included these financial metrics to provide supplemental measures of its performance. The Company believes these metrics are important because they eliminate items that have less bearing on the Company’s current and future operating performance and highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures. 

INVESTOR CONTACT:

José M. Calvo-SoteloDeputy Chief Financial Officer & EVP - Corporate DevelopmentTel:       [phone]Email:   [e-mail]

Ferroglobe PLC and Subsidiaries
Unaudited Condensed Consolidated Income Statement
(in thousands of U.S. dollars, except per share amounts)
	Quarter Ended			Quarter Ended			Quarter Ended			Year Ended			Year Ended
	December 31, 2018			September 30, 2018			December 31, 2017			December 31, 2018			December 31, 2017
Sales	$	603,519		$	526,838		$	468,218		$	2,274,038		$	1,741,693
Cost of sales		(445,772)			(334,526)			(284,614)			(1,444,793)			(1,043,395)
Other operating income		25,039			5,701			5,158			46,037			18,199
Staff costs		(81,209)			(88,668)			(87,127)			(341,043)			(301,963)
Other operating expense		(73,160)			(64,524)			(55,052)			(283,930)			(239,926)
Depreciation and amortization charges, operating allowances and write-downs		(30,062)			(30,750)			(23,830)			(119,137)			(104,529)
Bargain purchase gain		(7,379)			—			—			37,254			—
Impairment losses		(4,435)			—			(30,859)			(4,435)			(30,957)
Other gain		10,477			221			6,479			13,413			575
Operating (loss) profit		(2,982)			14,292			(1,627)			177,404			39,697
Net finance expense		(15,676)			(13,952)			(19,659)			(57,196)			(61,704)
Financial derivatives gain (loss)		1,383			388			(956)			2,838			(6,850)
Exchange differences		(846)			(3,071)			2,500			(11,896)			8,214
(Loss) profit before tax		(18,121)			(2,343)			(19,742)			111,150			(20,643)
Income tax benefit (expense)		2,877			(573)			26,022			(27,666)			14,821
(Loss) profit for the period		(15,244)			(2,916)			6,280			83,484			(5,822)
Loss attributable to non-controlling interest		1,895			1,671			84			6,040			5,144
(Loss) profit attributable to the parent	$	(13,349)		$	(1,245)		$	6,364		$	89,524		$	(678)
EBITDA	$	27,080		$	45,042		$	22,203		$	296,541		$	144,226
Adjusted EBITDA	$	32,111		$	45,042		$	53,670		$	253,053		$	184,533
Weighted average shares outstanding
Basic		170,183			171,935			171,953			171,406			171,949
Diluted		170,183			171,935			172,128			171,530			171,949
(Loss) profit per ordinary share
Basic	$	(0.08)		$	(0.01)		$	0.04		$	0.52		$	(0.00)
Diluted	$	(0.08)		$	(0.01)		$	0.04		$	0.52		$	(0.00)

 

Ferroglobe PLC and Subsidiaries
Unaudited Condensed Consolidated Statement of Financial Position
(in thousands of U.S. dollars)
	December 31,			September 30,			December 31,
	2018			2018			2017
ASSETS
Non-current assets
Goodwill	$	202,848		$	204,264		$	205,287
Other intangible assets		65,850			55,997			58,658
Property, plant and equipment		929,421			941,780			917,974
Non-current financial assets		72,865			88,199			89,315
Deferred tax assets		3,304			6,679			5,273
Non-current receivables from related parties		2,288			2,315			2,400
Other non-current assets		16,887			18,206			30,059
Total non-current assets		1,293,463			1,317,440			1,308,966
Current assets
Inventories		459,257			554,676			361,231
Trade and other receivables		156,781			142,233			111,463
Current receivables from related parties		14,226			5,571			4,572
Current income tax assets		27,517			15,848			17,158
Current financial assets		—			2			2,469
Other current assets		8,315			12,898			9,926
Cash and cash equivalents		216,562			131,671			184,472
Total current assets		882,658			862,899			691,291
Total assets	$	2,176,121		$	2,180,339		$	2,000,257
EQUITY AND LIABILITIES
Equity	$	943,788		$	987,388		$	937,758
Non-current liabilities
Deferred income		1,434			4,336			3,172
Provisions		75,750			78,846			82,397
Bank borrowings		132,821			133,056			—
Obligations under finance leases		53,472			57,389			69,713
Debt instruments		341,657			341,102			339,332
Other financial liabilities		32,788			39,867			49,011
Other non-current liabilities		30,369			20,367			3,536
Deferred tax liabilities		68,569			67,513			65,142
Total non-current liabilities		736,860			742,476			612,303
Current liabilities
Provisions		40,586			24,308			33,095
Bank borrowings		8,191			1,341			1,003
Obligations under finance leases		12,999			13,019			12,920
Debt instruments		10,937			2,734			10,938
Other financial liabilities		52,524			54,027			88,420
Payables to related parties		11,128			12,273			12,973
Trade and other payables		256,823			253,591			192,859
Current income tax liabilities		1,826			6,435			7,419
Other current liabilities		100,459			82,747			90,569
Total current liabilities		495,473			450,475			450,196
Total equity and liabilities	$	2,176,121		$	2,180,339		$	2,000,257

 

Ferroglobe PLC and Subsidiaries
Unaudited Condensed Consolidated Statement of Cash Flows
(in thousands of U.S. dollars)
	Quarter Ended			Quarter Ended				Year Ended			Year Ended
	December 31, 2018			September 30, 2018				December 31, 2018			December 31, 2017
Cash flows from operating activities:
(Loss) profit for the period	$	(15,244)		$	(2,916)			$	83,484		$	(5,822)
Adjustments to reconcile net (loss) profit to net cash used by operating activities:
Income tax (benefit) expense		(2,877)			573				27,666			(14,821)
Depreciation and amortization charges, operating allowances and write-downs		30,062			30,750				119,137			104,529
Net finance expense		15,676			13,952				57,196			61,704
Financial derivatives (gain) loss		(1,383)			(388)				(2,838)			6,850
Exchange differences		846			3,071				11,896			(8,214)
Impairment losses		4,435			—				4,435			30,957
Bargain purchase gain		7,379			—				(37,254)			—
Share-based compensation		1,016			1,050				2,798			2,405
Other adjustments		(10,477)			(221)				(13,413)			(575)
Changes in operating assets and liabilities
Decrease (increase) in inventories		88,903			(25,666)				(103,294)			(16,274)
(Increase) decrease in trade receivables		(13,051)			6,224				(26,597)			50,168
Increase (decrease) in trade payables		5,772			(21,213)				55,410			17,613
Other		9,518			10,543				(22,892)			(12,251)
Income taxes paid		(6,983)			(5,257)				(36,408)			(26,764)
Interest paid		(4,360)			(18,400)				(43,018)			(39,130)
Net cash provided (used) by operating activities		109,232			(7,898)				76,308			150,375
Cash flows from investing activities:
Payments due to investments:
Other intangible assets		(240)			(149)				(3,313)			(811)
Property, plant and equipment		(30,239)			(25,696)				(108,244)			(74,616)
Other		—			—				(8)			(343)
Disposals:
Other non-current assets		—			—				12,734			—
Other		—			947				6,861			—
Acquisition of subsidiary		—			—				(20,379)			—
Disposal of subsidiary		20,533			—				20,533			—
Interest and finance income received		843			638				3,833			952
Net cash used by investing activities		(9,103)			(24,260)				(87,983)			(74,818)
Cash flows from financing activities:
Dividends paid		—			(10,321)				(20,642)			—
Payment for debt issuance costs		(429)			—				(4,905)			(16,765)
Repayment of other financial liabilities		—			—				(33,096)			—
Proceeds from debt issuance		—			—				—			350,000
Increase/(decrease) in bank borrowings:
Borrowings		6,882			25,286				252,200			31,455
Payments		—			—				(106,514)			(453,948)
Proceeds from stock option exercises		—			—				240			180
Other amounts paid due to financing activities		(3,177)			(3,067)				(13,879)			(24,319)
Payments to acquire or redeem own shares		(16,598)			(3,502)				(20,100)			—
Net cash (used) provided by financing activities		(13,322)			8,396				53,304			(113,397)
Total net cash flows for the period		86,807			(23,762)				41,629			(37,840)
Beginning balance of cash and cash equivalents		131,671			155,984				184,472			196,982
Exchange differences on cash and cash equivalents in foreign currencies		(1,916)			(551)				(9,539)			25,330
Ending balance of cash and cash equivalents	$	216,562		$	131,671			$	216,562		$	184,472

Adjusted EBITDA ($,000):

	Quarter Ended			Quarter Ended			Quarter Ended			Year Ended			Year Ended
	December 31, 2018			September 30, 2018			December 31, 2017			December 31, 2018			December 31, 2017
(Loss) profit attributable to the parent	$	(13,349)		$	(1,245)		$	6,364		$	89,524		$	(678)
Loss attributable to non-controlling interest		(1,895)			(1,671)			(84)			(6,040)			(5,144)
Income tax (benefit) expense		(2,877)			573			(26,022)			27,666			(14,821)
Net finance expense		15,676			13,952			19,659			57,196			61,704
Financial derivatives (gain) loss		(1,383)			(388)			956			(2,838)			6,850
Exchange differences		846			3,071			(2,500)			11,896			(8,214)
Depreciation and amortization charges, operating allowances and write-downs		30,062			30,750			23,830			119,137			104,529
EBITDA		27,080			45,042			22,203			296,541			144,226
Non-controlling interest settlement		—			—			—			—			1,751
Power credit		—			—			—			—			(3,696)
Long lived asset charge due to reclassification of discontinued operations to continuing operations		—			—			—			—			2,608
Accrual of contingent liabilities		—			—			6,044			—			12,444
Impairment loss		8,255			—			30,618			8,255			30,618
Business interruption		—			—			—			—			(1,980)
Revaluation of biological assets		1,144			—			(5,195)			1,144			(5,195)
Step-up valuation adjustment		—			—			—			—			3,757
Bargain purchase gain		7,379			—			—			(37,254)			—
Gain on sale of hydro plant assets		(11,747)			—			—			(11,747)			—
Share-based compensation		—			—			—			(3,886)			—
Adjusted EBITDA	$	32,111		$	45,042		$	53,670		$	253,053		$	184,533

Adjusted (loss) profit attributable to Ferroglobe ($,000): 

	Quarter Ended			Quarter Ended			Quarter Ended			Year Ended			Year Ended
	December 31, 2018			September 30, 2018			December 31, 2017			December 31, 2018			December 31, 2017
(Loss) profit attributable to the parent	$	(13,349)		$	(1,245)		$	6,364		$	89,524		$	(678)
Tax rate adjustment		2,922			1,322			(19,705)			(7,902)			(8,215)
Non-controlling interest settlement		—			—			—			—			1,191
Power credit		—			—			—			—			(2,513)
Long lived asset charge due to reclassification of discontinued operations to continuing operations		—			—			—			—			1,773
Accrual of contingent liabilities		—			—			4,110			—			8,462
Impairment loss		5,613			—			20,820			5,613			20,820
Business interruption		—			—			—			—			(1,346)
Revaluation of biological assets		778			—			(3,533)			778			(3,533)
Step-up valuation adjustment		—			—			—			—			2,555
Bargain purchase gain		5,018			—			—			(25,333)			—
Gain on sale of hydro plant assets		(7,988)			—			—			(7,988)			—
Share-based compensation		—			—			—			(2,642)			—
Adjusted (loss) profit attributable to the parent	$	(7,006)		$	77		$	8,056		$	52,050		$	18,516

Adjusted diluted (loss) profit per share:

	Quarter Ended			Quarter Ended			Quarter Ended			Year Ended			Year Ended
	December 31, 2018			September 30, 2018			December 31, 2017			December 31, 2018			December 31, 2017
Diluted (loss) profit per ordinary share	$	(0.08)		$	(0.01)		$	0.04		$	0.52		$	(0.00)
Tax rate adjustment		0.02			0.01			(0.11)			(0.05)			(0.05)
Non-controlling interest settlement		—			—			—			—			0.01
Power credit		—			—			—			—			(0.01)
Long lived asset charge due to reclassification of discontinued operations to continuing operations		—			—			—			—			0.01
Accrual of contingent liabilities		—			—			0.02			—			0.05
Impairment loss		0.03			—			0.12			0.03			0.12
Business interruption		—			—			—			—			(0.01)
Revaluation of biological assets		0.00			—			(0.02)			0.00			(0.02)
Step-up valuation adjustment		—			—			—			—			0.01
Bargain purchase gain		0.03			—			—			(0.15)			—
Gain on sale of hydro plant assets		(0.05)			—			—			(0.05)			—
Share-based compensation		—			—			—			(0.02)			—
Adjusted diluted (loss) profit per ordinary share	$	(0.05)		$	0.00		$	0.05		$	0.28		$	0.11