RO aluminium group Alro turns into profit as it focuses on processing
Romanian aluminium group Alro turned into the black for the first half of the year after losses incurred in the same period last year, and the success seems to be associated with a focus on more value-added aluminium processing - rather than energy-intensive aluminium production.
Alumina production more than halved to under 100 ktonnes while the quantity of aluminium processed increased from under 55 ktonnes to over 59 ktonnes in H1.
This was achieved at the price of suspending the activity of the alumina production at Alum Tulcea - as the cost of the natural gas used in the production process, per unit of output, reached the price of the end products.
Overall, given the higher price of processed (extruded) aluminium and the stronger demand for end products (seen in the larger amount of aluminium processed), Alro reported a net profit of RON 15.3 mln (EUR 3 mln) in H1, compared to a loss of RON 47.5 mln in the same period last year, while its revenues increased by 39% YoY to RON 2.1 bln (EUR 400 mln).
In H1, the operating result (EBIT) more than doubled to RON 147 mln from RON 63 mln in the same period last year, as a result of the measures implemented at the group level to reduce the effects of energy prices that reached unsustainable levels.
The company’s market capitalisation nears RON 964 mln (over EUR 190 mln). Its shares rose by 5.9% after the company reported H1 financials.