ALRO Group registered a turnover of RON 2.51 billion while effectively managed its operations during the pandemic crisis

Fri, 03/26/2021 - 18:46
  •  The Group implemented  comprehensive health & safety and anti-crisis programme that allowed it to maintain all operations functional in 2020
  • ALRO remains the biggest producer of aluminium wire rod in Europe and one of the biggest suppliers in the cable market
  • The successful refinancing finalized in November 2020 shows recognition of a sound business and gives stability and financial cost predictability for the coming period
  • The investments focus on instrumental projects to increase energy efficiency, reduce production costs and ensure operational continuity. The Company plans to implement state-of-the-art technologies to achieve climate neutrality targets

Slatina, 26 March 2021 – ALRO S.A. (BVB: ALR, “the Company” or “ALRO”), one of the largest vertically integrated aluminium producers in Europe, measured by production capacity, announces today its consolidated and separate financial full-year 2020 results. ALRO Group registered a turnover of RON 2.51 billion, slightly lower compared to the RON 2.78 billion registered during the similar period of 2019 (ALRO stand-alone, 2020: RON 2.3 billion vs. 2019: RON 2.5 billion). In 2020, the Group registered a net profit of RON 335 million, compared to a net loss of RON 67 million, in 2019 (ALRO stand-alone, 2020: profit of RON 295 million vs. 2019: loss of RON 153 million). In 2020, the Group had to face an unpredictable environment encompassing the consequences of the pandemic, low alumina and aluminium prices but it managed to overcome all these challenges and report good results by implementing several cost-cutting measures, improvement of acquisition and sales strategies while having in place effective and comprehensive measures to prevent the infection or its employees and assure the safety of its business partners.

“Looking back to what happened in 2020, we could say that it was the year when ALRO proved once more that it is a robust company that has adapted to the new situation and game rules very quickly and effectively. We are proud to say that ALRO was one of the first companies to react to the COVID-19 effects. We managed to promptly implement effective and comprehensive measures that ensured the continuity of the Group's operations while protecting the health of our employees and their families”, said Marian NĂSTASE, Chairman of the Board of Directors, ALRO. “We kept our strategy of developing high and very high value-added products and continued the vital investments, even though the pressure was even higher in terms of cash-flows, falling demand and LME prices and we had to face several restrictions due to the pandemic context. Even though 2020 was a tough year, we are prepared to face another period marked by challenges. We proved in the past that we can take advantage of all market opportunities and transform our weaknesses into strengths and we are prepared more than ever to act likewise in the future, as well”, added Marian NĂSTASE.

COVID-19 and Market Update

In 2020, the aluminium price at London Metal Exchange (LME) reached an average of 1,704 USD/tonne, a lower level compared to that registered in 2019 of 1,791 USD/tonne. During the lockdown period, the LME registered a negative record of 1,422 USD/tonne, the minimum of the last five years; however, starting June 2020, the aluminium price stared to increase both on the optimism over COVID-19 vaccine availability and on higher Chinese demand. Thus, the quotations exceeded 2,000 USD/tonne in December 2020, while the LME inventories shrunk by the end of 2020.

In terms of demand, the first quarter of 2020 brought a significant slowdown for all manufacturing industries, due to the lockdown determined by the COVID-19 pandemic, while in the second quarter of 2020, most European countries started to ease the restrictions on movement and business activities, only to come back to restrictions and even partial lockdowns in the third quarter of 2020. This volatility of the European and international social and business background translated in a drop in shipments for flat-rolled products because of the decline of all transport industries. However, the building and construction industry showed signs of improvement, as constructors restarted the projects already approved before the pandemic outbreak in Europe. Moreover, the anti-dumping measures imposed by the EU on several types of aluminium products from China led to the increase of European sales and both ALRO and Vimetco Extrusion took advantage of this situation. 

ALRO was one of the first companies to react to the COVID-19 effects and managed to promptly implement effective and comprehensive measures that translated further into the continuity of the Group's operations; thus throughout 2020, the aluminium manufacturing facilities, alumina refinery and bauxite mine were fully operational.

 Financial and Operational Review

 The anti-crisis programme implemented at the Group’s level starting 2019 and continued even in a more severe manner during 2020, showed its results and partially off-set the adverse market conditions attributable to the COVID-19 crisis that affected all companies in the aluminium industry. Thus, in terms of cash, in 2020, the Group managed to generate positive net cash flows by our operating activities of RON 323 million, three times higher than the one reported in the similar period of 2019 mainly due to ETS compensation received in September 2020 that relates to financial year 2019 and sales of emission certificates on one side, and on the other side to the positive effects of the anti-crisis and inventories levels optimization measures implemented throughout 2020. Moreover, a key objective in 2020 was to preserve the cash position considering the COVID-19 pandemic potential negative effects. Investments were slowdown but the strategic ones were on track and those initially postponed are already on the management’s agenda as priorities, as well. Furthermore, the successful refinancing of the Company’s working capital facilities was finalized in November 2020 and this new engagement of the banks for another three years shows recognition of a sound business and gives stability and financial cost predictability for the coming period. Thus, the Company plans to implement state-of-the-art technologies to achieve climate neutrality targets.

Regarding the Group’s sales to third party of primary products, their volume level increased by almost 1% in 2020, to 127,550 tonnes compared to 126,565 tonnes in the same period of 2019, mainly thanks to wire rod sales, as ALRO is the biggest producer of aluminium wire rod in Europe, being one of the main suppliers in the cable market. Sales of processed products in volume terms slightly decreased by almost 1% in 2020 compared to 2019. Of these, the volumes of the flat-rolled products decreased by 6.8% YoY, mainly on lower coils (-31.6%) as the pandemic affected the worldwide industry starting 2Q by creating logistics problems that further translated into lower activity to customers. However, despite the pandemic negative effects, the extruded products increased by 21.7% YoY mainly due to deliveries of profiles to the solar panels market.

Also, in 2020, the Group continued its main CAPEX project, AP12LE (“Aluminium Pechiney 12 Low Energy”) relining during the year 53 pots with the new technology. The finalization of this project will help ALRO stand among the first 10 most efficient aluminium producers worldwide (except China) from an energy efficiency perspective for the electrolysis area.


                  Chairman of the Board of Directors                                  Chief Executive Officer

                            Marian-Daniel Năstase                                                Gheorghe Dobra


For further information, please contact:

Florența Ghiță


Phone: +40 744 644 004


Notes to the Editors:

ALRO Group

The companies part of ALRO Group are: ALRO S.A. – manufacturer of aluminium, Alum S.A. – producer of alumina, Sierra Mineral Holdings I, Ltd. – bauxite mining, Vimetco Extrusion S.R.L. – extrusion business line, Conef S.A. – holding and management company, Global Aluminium Ltd. – holding company and Bauxite Marketing Ltd - marketing. Having this structure, the Group created an integrated production chain assuring the raw materials for ALRO.


ALRO is a subsidiary of Vimetco N.V. (the Netherlands), a global, vertically-integrated primary and processed aluminium producer. ALRO is one of the largest vertically integrated aluminium producers, by capacity, in Europe, having an installed production capacity of 265,000 tonnes per annum of electrolytic aluminium, 35,000 tonnes per annum of recycled aluminium and 335,000 tonnes per annum primary cast aluminium.

The main market for ALRO products is represented by the European Union; the Company exports its products to the USA and Asia, as well. ALRO is ISO 9001 certified for quality management and has NADCAP and EN 9100 certificates for aerospace production organizations, ALRO’s products adhere to the quality standards for primary aluminium on the LME, as well as international standards for flat rolled products.

Starting from 18 March 2019, the Index Committee of the Bucharest Stock Exchange approved the inclusion of ALRO (code ALR) in BET, the main index of the market, and in BET-TR, the total return version of BET. ALRO’s shares have been listed on the Bucharest Stock Exchange since October 1997 and ALRO represents the first company in the aluminium industry present in these two indices.

Since 16 November 2020, ALRO is a member of ASI (Aluminium Stewardship Initiative), an international association that contributes to enhancing sustainability in the global aluminium sector.

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