ALRO S.A., one of the largest vertically integrated aluminium producers, by capacity, in Europe, announces today its consolidated financial results for the first nine months of 2018. During the period under review, ALRO Group turnover increased to RON 2.3 billion, compared to RON 2 billion, in Q1-Q3 2017, while the net profit decreased to RON 224 million in the first nine-month period of 2018, from RON 257 million in in the same period of previous year.
“We remained focused on quality and overall efficiency of our operations, strategy that helped us report good results over the years and during these first nine months of 2018, as well, even though the market environment continued to reflect special conditions”, said Marian Năstase, Chairman of the Board of Directors of ALRO. “In Q1-Q3 2018 we kept our attention on CAPEX investments with the aim to implement the best available technologies in all our business segments and thus, to reach our goal to increase supply of HVAP and VHVAPs to sophisticated industries”, added Marian Năstase.
During the nine-month period of 2018, higher aluminium prices were reported, with an LME average quotation of 2,157 USD/tonne (Q1-Q3 2017: 1,924 USD/tonne), which led to a higher Group’s turnover by RON 251 million (Q1-Q3 2018: RON 2,296 million compared to Q1-Q3 2017: RON 2,045 million). The primary aluminium sales increased to RON 974 million in the first nine-month period of 2018 from RON 870 million in Q1-Q3 2017; the same trend was reported for the processed aluminium sales which reached the level of RON 1,062 million in Q1-Q3 2018, from RON 1,056 million in Q1-Q3 2017.
Overall, the Group generated a gross profit of RON 536 million in the first three quarters of 2018 from RON 507 million in the first nine months of the previous year. The result of the period under review was of RON 224 million, following RON 257 million in the previous year.
In the first nine-month period of 2018, ALRO Group continued the research investment projects dedicated to infrastructure for high-qualification industrial applications and to aluminium hydroxide technology (dry and wet), which are co-financed by the European Fund for Regional Development, through the Competitiveness Operational Program 2014-2020. Moreover, in the period under review, the Group allocated resources for the modernization of the Cold Rolling Mill no. 2 and for the replacement of some of the electrolysis pots components, in order to sustain the budgeted level of production, as well as for the investments to maintain and improve the operational efficiency within ALUM and SMHL.