Alro’s net profit crashes by over 42 pc in H1

In the first half of this year, Alro registered a turnover of RON 1.1 billion lower as compared to the level registered in H1 2015, when it stood at RON 1.2 billion, a press release informs on Friday. The company reported an adjusted net profit of RON 64 million, down by 76.5 percent compared to RON 113 million, in H1 2015, while the net profit decreased to RON 39 million, in H1 2016, from RON 68 million, level reached in H1 2015, down by over 42 percent.

In its turn, Alro Group registered sales of RON 1.2 billion, in the first six months of 2016, a lower level compared to RON 1.28 billion registered in H1 2015. The adjusted net profit for Alro Group stood at RON 56 million, for the same period, compared to RON 136 million, in H1 2015, while the net profit for H1 2016 was of RON 35 million, compared to RON 84 million in the similar period of 2015.

These results were mainly influenced by the level of LME that stood in H1 2016 at an average of 1,544 USD/tonne, compared to 1,783 USD/tonne, in H1 2015.

“Alro managed to obtain positive results in H1 2016, despite the pricing pressure coming from an LME below 1,600 USD/ tonne combined with lower conversion premiums,” Marian Nastase, President of Alro’s Board said.

The aluminium sales increased in volume, both in the primary and in the processed segments, Alro registering a total of 79,533 tonnes of primary aluminium sold in H1 2016, up by almost 10,900 tonnes compared to the similar period of 2015. The processed aluminium sales reached almost 42,000 tones in the first six months of 2016, compared to 39,629 tonnes, in H1 2015. As aluminium sales increased, Alro adjusted its production and recorded higher production volumes. The primary aluminium production reached almost 138,000 tonnes, up from the 134,760 tonnes in H1 2015. The company increased the processed aluminium production by 2,000 tonnes, as well.

Alro investment program for 2016 stands at USD 53 million and it includes the increase of scrap processing capacity of Eco Cast House, to reach a capacity of 90,000 tonnes per year, up from 60,000 tonnes/year.