Romanian aluminum producer Alro posts EUR 18 mln loss in the first half

Romanian aluminum producer Alro S.A. recorded an adjusted net loss of RON 80 million (almost EUR 18 million) in the first six months of the year, over four times higher than the RON 17 million loss posted in the same period in 2013, according to the company’s financial results. The turnover also went down to RON 966 million (EUR 216.5 million) in the first half of this year, compared to RON 1.02 billion reported in the same period the year before. “Two major factors continued to impact Alro’s results during this half year as well: the international aluminum market, where the demand is still weak, while, locally we faced the high costs for energy”, said Marian Nastase, Chairman of the Board of Alro. Alro Group registered an adjusted net loss of RON 89 million (almost EUR 20 million) in January-June, similar to the one posted in the first six months of 2013. Alro S.A. reported an increase of 2 percent in the primary aluminum production compared to the first half of 2013, and an increased downstream production of 5 percent. The company’s primary aluminum sales were of 70,304 tonnes, compared to 71,168 tonnes in January-June 2013, while the sales volume of processed aluminum increased to 39,256 tonnes. “While the production increased slightly in H1 2014 compared to H1 2013, the revenues decreased mainly due to the lower aluminum price on the London Metal Exchange (LME). (..) Another factor that negatively affected the operational results was the high energy costs. However, positive signs were visible started with the second quarter of this year, as the Romanian Government approved a decision to implement a support scheme to exempt large electricity consumers from the payment of up to 85 percent of the green certificates quota, decision that was submitted to the European Commission for approval,” reads the company’s statement. Alro is part of the international group Vimetco and is one of the largest aluminum producer in Central and Eastern Europe. Irina Popescu, irina.popescu@romania-insider.com