GrafTech International Ltd., a global manufacturer of graphite electrodes, recently announced third quarter net sales for the period ending September 30, 2018, at $455 million compared to $137 million in the same three-month period the previous year. For the nine months ended September 30, GrafTech reported net sales of $1,363 million compared to $358 million in the same period the previous year, up 281 percent. Adjusted EBITDA from continuing operations was reported as $879 million for the three quarters compared to almost $39 million in the same period the previous year.
For the nine months ended September 30, 2018, GrafTech sales volume was 133,000 mt, up 3 percent from 129,000 mt in the same period the previous year. Production volume was reported at 128,000 mt in the nine-month period in 2018 compared to 122,000 mt in the same period in 2017. Total production capacity was assessed at 149,000 mt in the nine-month period in 2018 and 144,000 mt in the same period the previous year, which reflected an 85 percent capacity utilization in 2017 and 86 percent in 2018. Annual production capacity is expected to increase to 202,000 mt by early 2019.
Of note, the weighted average realized price for graphite electrodes was 390 percent higher in the nine months of 2018 with a weighted average price of $9,932/mt in 2018 compared to $2,547/mt in the same period in 2017.
According to the quarterly report, GrafTech has sold approximately two-thirds of its long-term graphite electrode production through three-to-five year, fixed-price and fixed-volume take-or-pay contracts.