May 6 (Reuters) - Albemarle, the world's largest lithium producer, posted a quarterly profit on Wednesday more than double Wall Street's expectations due to rising prices and sales of the battery metal, and its shares rose more than 9%.
The results reflect rising demand for lithium from the electric vehicle and energy storage sectors, especially given the impact of the Iran conflict on fuel prices. Lithium supply, meanwhile, has tightened due to the closure of a key mine in China, an export ban in Zimbabwe,
and dwindling lithium carbonate stocks.
Prices for the ultralight metal have jumped to more than two-year highs as a result.
Albemarle itself had idled a major Australian processing plant in February amid weaker prices, and executives said on Wednesday they would not change tack, yet.
"We are focused on the things within our control, including operational excellence, cost and productivity discipline, and cash generation," said CEO Kent Masters.
The company, which operates across the Americas, Australia, Asia and Europe, posted a first-quarter net profit of $319.1 million, or $2.34 per share, compared to $49.3 million, or break-even per share, in the year-ago quarter.
Excluding one-time items, Albemarle earned $2.95 per share. By that measure, analysts expected earnings of $1.09 per share, according to LSEG data.
Sales from the company's lithium division rose 70% to $891.2 million, driven by a 51% increase in prices for the battery metal and 14% higher volumes.
For the year, Albemarle expects its capital spending to be roughly the same as 2025 at $550 million to $600 million.
The Charlotte, North Carolina-based company plans to discuss the quarterly results on a Thursday morning conference call with investors.
(Reporting by Ernest Scheyder; Editing by Chris Reese and Bill Berkrot)
