BUCHAREST (Romania), August 10 (SeeNews) - BUCHAREST (Romania), August 10 (SeeNews) - Romanian aluminium producer Alro [BSE: ALR] turned a net profit of 15.3 million lei ($3.2 million/ 3.1 million euro) in the first half of 2022, compared to a 47.6 million lei net loss in the like period of 2021, it said on Wednesday.
The significant recovery was the result of swift and decisive measures implemented at group level to mitigate the effects of the unsustainable energy prices, Alro said in a statement filed with the Bucharest Stock Exchange, BVB.
The company's turnover rose to 2.1 billion lei in the first half compared to 1.5 billion lei in the like period of 2021, due to higher demand for aluminium on the international markets and improved London Metal Exchange (LME) levels.
"In H1 2022, the demand slowed down, new highest levels of inflation and record levels for interest rates materialized, all these adding further pressure on the companies and forcing us to prove adaptability and change our business model starting in 2022. Accordingly, we decided to temporarily suspend the production activity of three electrolysis halls at Alro beginning January 2022 and the entire alumina production at Alum, starting August 2022”," Alro chairman of the board of directors Marian Nastase said.
The group continued its investment programme aimed at reducing the electric power dependence by increasing the quantity of molten metal from recycled scrap, increasing the operational reliability of the critical equipment, and improving the energy efficiency of its equipment and technological processes.
Alro’s Investment Programme of almost $23 million (22.5 million euro) for the year 2022 comprises investment projects necessary for achieving the quantity of metal following the new business model adopted by the group for 2022.
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's shares changed hands 5.19% higher at 1.42 lei by 1238 CET on Wednesday on the BVB.
(1 euro=4.9132 lei)
Alro SA is among the biggest companies in SEE, for more reference take a look at Top 100 companies