RO aluminium smelter Alro "hasn't taken a decision on closing production"

Romania's aluminium maker Alro, the country's largest single electricity consumer, said that "it has not taken a decision" regarding the imminent closure of the production activity, "despite the exceptional situation on the energy and gas markets."

The statement comes after the trade union reported an imminent reduction of production and possible suspension of activity because of the high energy prices.

The company's management says in a note to investors that it is concerned about recent developments in energy prices, considering the levels reached in recent days as "unfounded and economically unsustainable."

The economic situation is fluid and extremely volatile, the management explains, adding that "when the company's management will make impact decisions for the company and investors, it will announce this according to the regulations in force."

The company's shares plunged by 12.6% on December 22 following the comments.

However, analysts of Wood & Company brokerage house, quoted by Ziarul Financiar, maintain the "buy" recommendation and the target price of RON 4.4 per share, which implies a potential yield of over 100%.

(Photo courtesy of the company)