Ferroglobe PLC (NASDAQ:GSM) Q3 2022 Earnings Conference Call November 16, 2022 8:30 AM ET

Company Participants

Anis Barodawalla - VP, IR

Javier López Madrid - Executive Chairman

Beatriz García-Cos - CFO & Principal Accounting Officer

Benjamin Crespy - COO

Craig Arnold - Chief Commercial Officer and EVP, Sales & Marketing

Benoist Ollivier - Deputy CEO, Chief Technology & Innovation Officer

Conference Call Participants

Lucas Pipes - B. Riley Securities

Martin Englert - Seaport Research Partners

Michael Lam - Jemekk Capital Management

Thomas Murphy - Odeon Capital

Operator

Good morning, ladies and gentlemen, and welcome to Ferroglobe's Third Quarter 2022 Earnings Call. [Operator Instructions]. As a reminder, this conference call is being recorded. I would now like to turn the call over to Anis Barodawalla, Ferroglobe's Vice President of Investor Relations and Corporate Strategy. You may begin.

Anis Barodawalla

Thank you. Good morning, everyone, and thank you for joining Ferroglobe's Third Quarter 2022 Conference Call. Joining me today here is Javier López Madrid, our Executive Chairman; Beatriz García-Cos, our Chief Financial Officer; Benjamin Crespy, our Chief Operating Officer; Benoist Ollivier, our Chief Technology and Innovation Officer and Deputy CEO; and Craig Arnold, our Chief Commercial Officer; Marco Levi, our Chief Executive Officer, is on the call but will not be speaking as he has laryngitis.

Before we get started with some prepared remarks, I'm going to read a brief statement. Please turn to Slide 2 at this time. Statements made by management during this conference call that are forward-looking are based on current expectations. Risk factors that could cause actual results to differ materially from these forward-looking statements can be found in Ferroglobe's most recent SEC filings and the exhibits to those filings, which are available on our web page, ferroglobe.com. In addition, this discussion includes references to EBITDA, adjusted EBITDA, adjusted EBITDA margin, working capital, adjusted gross debt, net debt, adjusted net profit and adjusted diluted earnings per share, which are non-IFRS measures. Reconciliation of these non-IFRS measures may be found in our most recent SEC filings. At this time, I would now like to turn the call over to Javier López Madrid, our Executive Chairman. Slide 4, please.

Javier López Madrid

Good morning or good afternoon, everyone. After a second -- after a record second quarter, we reported solid results in Q3 despite a challenging market environment. During the third quarter, market prices for each of our product groups declined from record levels in the previous quarter. Higher and volatile energy costs in Europe continue to persist. During the third quarter, we actively managed our global asset footprint by reducing operations in higher-cost regions like Spain and reallocating volumes to other geographies. Higher raw material costs negatively affected our margins, too.