ALRO registered in 2021 a consolidated turnover of RON 3.5 billion

Fri, 03/25/2022 - 19:08

Slatina, 25March2022 – ALRO S.A. (BSE: 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 statements for the year ended 31 December 2021. ALRO Group registered a turnover of RON 3.5 billion up from RON 2.5 billion in 2020 (ALRO stand-alone, 2021: RON 3.3 billion vs. 2020: RON 2.3 billion). In 2021, the Group registered a net profit of RON 26 million, compared to a net profit of RON 335 million in 2020 (ALRO stand-alone, 2021: profit of RON 35 million vs. 2020: profit of RON 295 million).The increased turnover for both the Group and ALRO was the result of a favourable trend of the aluminium quotations on the London Metal Exchange (LME) as well as of the constantly higher demand for the high and very high value-added products of the Group, with a focus on aluminium for aerospace industries, general engineering, and consumer products.

2021 brought even more challenges than 2020, with a sanitary crisis followed by an unprecedentedenergy crisis for the entire European and aluminium industries. We witnessed several EU competitors either significantly reducing their activities or completely closing”,said Marian NĂSTASE, Chairman of ALRO’s Board of Directors. “We managed to keep our activity thanks to our long-term business model focused on vertical integration while developing the production of high and very high value-added products. However, the prohibitive energy prices made us decide to reduce the electrolytic aluminium production, halting the production of three out of the five potrooms, a measure implemented in 2022. At the same time, we considered the specific technological measures that allow a quick and efficient restart when energy market conditions return to normal. This decision helps us preserve liquidity and fulfilling all the Company's financial obligations, including timely payment of salaries, taxes and fees,and debt service under the loans”, addedMarian NĂSTASE, Chairman of ALRO’s Board of Directors.


Market & Operational Update

Two major factors influenced the entire European aluminium industry in 2021: the demand that increased constantly and the energy prices that spiked to unprecedented levels, driven by the CO2 emission rights quotations and gas prices and scarcity. While the first driver led to record high aluminium prices on the London Metal Exchange (LME), the second one offset most of this increase and led to a significant cut-down in production at the EU level. Thus, in 2021, the LME reached an annual average of 2,480 USD/tonne, higher by 46% than in 2020, when the average was 1,704 USD/tonne. In 2021, the highest LME value was 3,180 USD/tonne, which was recorded in October (in 2020 the maximum level of 2,051 USD/tonne was reached in December). However, the CO2 certificate quotations surged in 2021, reflecting in record-high energy costs, European aluminium producers facing a 300% increase in electricity bills in the second part of 2021, compared to the same period or 2020. In Romania, the electricity price increase doubled by a shortage in supply, electricity supply contracts unilaterally denounced or renegotiated at inflated costs.

In line with these market outlooks, ALRO Group registered a turnover growth of 39% compared to 2020. In 2021, the Group took advantage of the increased demand for its high value-added products, especially from the aerospace industries, general engineering, and consumer products sectors. Furthermore, the alumina segment contributed to the Group turnover in 2021 to a greater extent than in 2020, recording a 61% increase in revenues from sales to third parties. The revenues from processed products sales increased by 36% in 2021 compared to 2020, while primary aluminium showed an increase of 32% for the same period. The good performance of the automotive and construction sectors, the anti-dumping tariffs imposed by the European Union on extruded products from China, very tight supply, lack of containers, and logistic pressure sustained the demand for billets, especially in 1H 2021, and the need for the Group’s primary products. Moreover, in June 2021, ALRO extended the multi-year agreement with Airbus based on the successful partnership, which validates ALRO's long-term investments and efforts to become a reputable supplier for the aerospace industry.

In terms of CSR and Sustainability practices, ALRO continued in 2021 to show its commitment to society. Since the beginning of the COVID-19 pandemic, ALRO has donated around RON 2.5 million to institutions involved in preventing and combating the effects of the pandemic. Moreover, the Group became a partner for the authorities in their effort to accelerate the vaccination campaign and in May 2021, opened two vaccination centres for the Group's employees and their families in Slatina and Tulcea. Furthermore, ALRO received the 1st award within the category "Best Sustainability Report" during the ARIR Gala held in November 2021. Also, ALRO and Vimetco Extrusion began the steps necessary to obtain the Aluminium Stewardship Initiative (ASI) certification, a process that will be finalized by the end of 2022.


       Marian-Daniel NĂSTASE                                                           Gheorghe DOBRA

Chairman of the Board of Directors                                            Chief Executive Officer


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, Vimetco Trading – aluminium sales. Having this structure, the Group created an integrated production chain assuring the raw materials for ALRO.


ALRO is a subsidiary of Vimetco PLC (Republic of Cyprus), 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 the Cast-House has a total cast aluminium capacity of 335,000 tonnes per annum and processing facilities of 130,000 tpa of hot and cold rolling facilities and extrusion shop.

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 2020, ALRO and Vimetco Extrusion are members of ASI (Aluminium Stewardship Initiative), an international association that contributes to enhancing sustainability in the global aluminium sector.

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