Alro S.A., the largest aluminium producer in Continental Europe (excluding Russia and Scandinavia), registered a preliminary adjusted net profit of more than RON 100 million (some 22 million euro) in 2016, higher compared to 2015 when it was of RON 45 million. The turnover of the Company stood at RON 2.1 billion, slightly lower compared to 2015, when it reached RON 2.3 billion, according to a company release.
“The investments we made over the past years in technology and in reducing our specific consumptions, as well as in expanding our products portfolio and quality, helped us to return to profit after several consecutive years of losses, during a period that is still difficult for our industry”, said Gheorghe Dobra, General Manager of Alro.
“The financial results recorded last year confirm once again our strategy to focus on processed products with high added value, while increasing our efficiency and reducing our costs. Thanks to this strategy we can remain internationally competitive, while offering our customers a stable and reliable partnership”, added Gheorghe Dobra.
Alro sales value was affected by the continuing decline in aluminium prices on the international markets, although sales volume increased on the primary aluminium segment and remained constant for the processed aluminium segment. Thus, the average aluminium price on the London Metal Exchange (LME) was in 2016 of 1,605 USD/tonne, compared to 1,661 USD/tonne in 2015. Total primary aluminium production was of 273,000 tonnes in 2016, up compared to 2015, when it was of 271,000 tonnes and processed aluminium production stood at 79,000 tonnes, a level similar to the one recorded in 2015. Total sales reached RON 2.1 billion in 2016, compared to RON 2.3 billion in 2015.
Cost of goods sold decreased to RON 1.8 billion in 2016 from RON 2 billion in 2015, as the Company managed to capture and capitalize the lower prices of raw materials on international markets. Moreover, more than 10% of the primary aluminium produced at Alro comes from recycled scrap. For this type of aluminium, the electricity consumption is 90% lower compared to the electrolytic aluminium production. Additionally, general expenses were lower by more than five million lei compared to 2015.
Under these circumstances, the Company recorded an operating profit of RON 170 million last year, compared to RON 157 million in 2015, while the net profit stood at RON 67 million compared to a net loss of RON 24 million in 2015.
In 2016, Alro continued its investment program for increasing operational efficiency, reducing specific consumptions and expanding its products portfolio. Thus the Company invested RON 76 million in 2016 for technological upgrades. Moreover, the Company started a project financed by the European Regional Development Fund for research and development investments, while improving the research infrastructure for heat-treated aluminium alloy plates for highly qualified industrial applications.
Moreover, Alro has invested in reducing the industrial water consumption and modernizing its energy dispatch, with a positive impact on its final costs.