The aluminum producer Alro Slatina has so far invested 100 million dollars in energy efficiency projects and planned new investments of nearly 15 million dollars in the next five years in this segment, Chairman of the Board at Alro, Marian Năstase, told energynomics.ro
“We have already invested about 100 million dollars, energy consumption directly affects our profits, and we approved a new budget of about 15 million dollars for the next five years. Perhaps these investments will take place in the first two years”, said Năstase.
The payment of renewable energy subsidies has seriously affected the energy-intensive companies and now the law that will relieve major consumers of up to 85% of these fees is awaiting approval at the Economy ministry. Once the ministry will decide to greenlight the exemption, it will apply retroactively from the beginning of the year.
Alro received approval for 85% reduction in ecotaxes
“Ecotaxes cost us totally the EBITDA (profit before tax, depreciation, amortization) of 2013, falling in the next year …”, said Năstase, explaining that large consumers hope to receive approvals for environmental levy relief from the government from 1 June, the European Union already giving their greenlight in this respect. “We hope to receive this endorsement from 1 June …. We’re already in mid- year”, said Nastase. Alro will get an exempt of 85%.
Asked by energynomics.ro what will be the level of ecotaxes paid for 2015 after the exemption of 85%, Năstase estimated their level at 5-10 million dollars. Once approval received, the exemption will apply retroactively to all of 2015, however, companies raised provisions to prepare for any scenario.
Năstase, who is also president of the Association of Large Energy Consumers (ABIEC), claims that there are about 200-300 companies that could receive the exemptions from renewable energy in various percentages, ranging from 40% to 85%.
“Not all large consumers will receive exemptions of 85%”, he says, explaining that it is not known exactly who has and who has not applied for exemption by now, nor in what ratio will they be exempted. “Alro paid 170 million dollars in environmental levies in the past four years”, said Gheorghe Dobra, CEO of the company. “If there was no exemption from green energy, probably we would have closed the plant”, says Dobra.
New investments in aluminum
Alro registered a turnover of 598 million lei in the first quarter of 2015, up 23% from 486 million lei in the same period in 2014, said Dobra. The adjusted net profit was of 23 million lei in Q1 2015 compared to an adjusted net loss of 44 million lei in the similar period of 2014. The company also recorded a positive EBIT of 96 million lei compared to a negative EBIT of 39 million lei in the first quarter of 2014.
“The results prove that we have strong and solid operations. However, in the first quarter of 2015, the company’s cash flows were affected by payment for the purchase of green certificates for 2014, for which we had to resort to banking financing”, said Năstase.
In 2015 the company will invest 59 million dollars and has a projected profit of 63 million dollars. “We have invested over 500 million dollars so far in modernization and vertical integration”, says Dobra.
Alro produces aluminum mainly for export, for the automotive and aeronautics indusrties. “In Romania we sell about 30% of primary aluminum and 10% of the machines”, says Dobra.
