BUCHAREST (Romania), May 16 (SeeNews) - Romanian aluminium producer Alro [BSE: ALR] said on Monday its net loss narrowed to 35 million lei ($7.3 million/ 7.1 million euro) in the first quarter of 2022 from 61 million lei in the like period of 2021.
A significant influence in the company's net result was the net foreign exchange loss mainly coming from the revaluation of loans and other debts in foreign currency, Alro said in a statement filed with the Bucharest Stock Exchange, BVB.
Also, global economic conditions that determined inflationary trends of the production factors had an effect on the results obtained, bringing about a 48% increase in the cost of goods sold.
The company's turnover rose to 1.06 billion lei in the first quarter compared to 688 million lei in the like period of 2021, mainly due to higher aluminium quotations on the London Metal Exchange (LME), combined with the growing demand for its high and very high value-added products, especially for the aerospace sector and an increase in the exchange rate.
However, the favourable market conditions were offset by the rise in utilities and raw materials prices on the international market. The high pressure for energy decarbonisation in Romania and Europe led to anomalies in the energy market, starting in the second half of 2021, which led to an increase in the electricity supply prices, a trend that continued in the first quarter of 2022, the company said.
"Our focus is more than ever on high and very high value-added aluminium products and extruded custom-made profiles while we direct most of our resources to increase the Eco-Recycling Facility capacity," Alro chairman of the board of directors Marian Nastase said.
"Meanwhile, we supplemented our aluminium needs by buying cold primary metal from the market and processing it. All these decisions and efforts helped us limit the huge impact of the electricity prices on our final result," Nastase added.
In January, Alro said it is aiming to find solutions for resuming full-scale electrolytic aluminium production starting 2023, subject to energy prices on the market.
A subsidiary of Vimetco N.V., Alro is one of the largest vertically integrated aluminium producers in Europe with an installed production capacity of 265,000 tonnes of electrolytic aluminium per year, 35,000 tonnes of recycled aluminium and 335,000 tonnes of primary cast aluminium.
Alro is part of Alro Group, alongside alumina producer Alum, bauxite mining company Sierra Mineral Holdings, extrusion business line Vimetco Extrusion, management company Conef, holding company Global Aluminium Ltd. and marketing services provider Bauxite Marketing Ltd and sales company Vimetco Trading.
The group's net loss narrowed to 18.1 million lei in the first quarter, from 62 million lei in the like period of 2021, while turnover rose to 1.1 billion lei from 744 million lei in the first quarter of the previous year.
Alro's shares were changing hands 1.36% lower at 1.40 lei by 1204CET on Monday on the BVB.
(1 euro=4.9469 lei)
Alro SA is among the biggest companies in SEE, for more reference take a look at Top 100 companies