ALRO registered a consolidated turnover of over RON 1.36 billion in H1 2020, despite unfavourable market conditions and COVID-19 pandemic

Wed, 08/12/2020 - 08:40

Slatina, 12 August 2020 – 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 financial results for the six months ended 30 June 2020. The Group’s turnover registered a slight decrease mainly due to market conditions that affected all players in the aluminium industry and due to the crisis caused by the COVID-19 pandemic. ALRO Group’s net profit was around RON 254 million in H1 2020 (H1 2019: RON 80 million) and the operating result (EBIT) increased to RON 343 million in H1 2020 (H1 2019: RON 166 million) thanks to the fact that the Romanian authorities have approved the implementation of the EU-ETS compensation scheme based on the EU decision and thus the high invoice for the energy was partially compensated.

The earnings for H1 2020 were affected due to a combination of factors, lower LME prices on international markets and impact of COVID-19 over the demand levels, partially mitigated by the efficiency of our operations and previously implemented cost-savings measures. Moreover, recovery signs are already visible in the market, the LME quotations on the international markets show in H2 2020 an upward trend and steady levels above 1,650 USD/tonne. Through these developments and by implementing even stricter controls and savings measures to improve the cash-flow, increasing our competitiveness through human capital, integration of state-of-the-art technologies and by providing high-quality and value-added products, we are confident that we can maintain the long lasting relationships with our customers while attracting and building new ones”, said Marian NĂSTASE, Chairman of the Board of Directors, ALRO. “In the context of the new requirements of the European Green Deal, we will focus on the products mix for increasing the high and very high value-added products, continue to invest in energy efficiency projects and to direct capital towards long-term environmentally sustainable investments having innovative technology with the aim to remain a viable choice for all investors that are interested in green investment opportunities “added Marian NĂSTASE.

COVID-19 and Market Update

In H1 2020, the aluminium industry faced a drop and reported an average of 1,595 USD/ tonne from an average of 1,791 USD/tonne in 2019; however, from 1,450 USD/tonne in April and May, LME bounced back to quotations of over 1,650 USD/tonne in July 2020.

In H1 2020 the global primary aluminium market was affected by a surplus of capacity and overloaded inventories, and thus the primary aluminium consumers such as rolling mills and extrusion plants have faced the falling demand for their products, reduced or suspended operations. While the downstream and end-use aluminium sectors have been closing production units, aluminium smelters have generally continued to operate. Moreover, the two main market segments for aluminium industry, aerospace and automotive, have been strongly hit by COVID-19 pandemic, effects which have been translated in the Company’s revenues.

Since an early stage of the COVID-19 pandemic outbreak, ALRO has implemented complex protocols and procedures in coordination with central and local authorities and compliance with the recommendations of the World Health Organization for industrial sites. Thus it managed to ensure the health of its employees, preventing infections and securing a continuous supply chain for its business partners and clients. Besides this, ALRO has tested its most exposed employees for COVID-19 and has its own healthcare office, open 24/7 to monitor its staff’s health.

ALRO has proved one more time its commitment to the local communities and the Group has donated almost RON 650,000 to institutions and organizations involved in preventing and mitigating the effects of COVID-19.

Financial and Operational Review

The Group’s consolidated sales in the first half-year of 2020 were of RON 1,360,942 thousand, lower by 9.6% compared to the level reported in the similar period of 2019 (respectively RON 1,506,218 thousand), mainly due to the unfavourable market conditions and due to the COVID-19 pandemic crisis. ALRO’s sales were of RON 1,222,845 thousand in H1 2020 (H1 2019: RON 1,330,783 thousand).

The Group’s Net Result for the first half of 2020 is a profit of RON 253,662 thousand, a higher value compared to RON 79,708 thousand registered in H1 2019 mainly due to the initial recognition of the EU-ETS scheme into the financials and due to the cost-saving actions continued in 1H 2020 even with more caution and with a more rigorous approach. The decrease of stocks for the finished good products and for the main raw materials significantly improved the cash flow. In this way, the Group managed to maintain the business viable and partially to off-set the descending trend of the LME quotations and decreased levels of demand caused by COVID-19 pandemic lockdown while maintaining as scheduled the obligations towards its financiers.

ALRO Group’s sales of primary products in volume terms increased to 65,883 tonnes in H1 2020 from 65,155 tonnes in H1 2019 due to wire rod sales higher by 2,600 tonnes as ALRO remains one of the first suppliers in this competitive market, being the biggest producer of aluminium wire rod in Europe. Sales of processed products in volume terms slightly decreased to 53,605 tonnes in H1 2020 from 54,853 tonnes in H1 2019 mainly due to lower coils as the most affected industries by the COVID-19 pandemic were automotive and aerospace. However, the extruded products showed significantly increased levels, i.e. by 18.7% in H1 2020 compared to the similar period of 2019 mainly due to deliveries of profiles to the solar panels market.

Main Events in H1 2020

ALRO celebrated on 30 June its 55th anniversary and over the past five decades, it has committed itself to its employees, partners and clients by becoming one of the main pillars of the Romanian economy. At the time of its establishment, the Company had an electrolytic aluminium production of over 8,000 tonnes per annum and produced only aluminium ingots. Currently, the Company has a diversified products portfolio, and almost 50% of its sales represent high and very-high value-added products for sophisticated industries, such as automotive and aerospace. 

In H1 2020, ALRO continued its investments in energy efficiency and sustainable development. Thus, 17 additional pots were relined with the AP12LE technology, one of the latest innovative measures that could be implemented in respect with energy efficiency and environmental protection, as part of the contract signed with Rio Tinto Aluminium Pechiney back in 2018. Currently, 42 pots were relined according to this innovative technology and the results are in line with the initial estimations and expectations. According to the research studies done by Rio Tinto Aluminium Pechiney, after the implementation of this project, ALRO will be a top-four performer from an energy efficiency of the electrolysis area perspective within its European peers.

The other Group’s subsidiaries have also reported achievements in H1 2020: ALUM innovated to fight against COVID-19 pandemic and developed through its Research and Development Laboratory, based on the local production guide of the World Health Organization a hand liquid disinfectant. This new product passed the bactericidal and fungicidal activity tests of the National Institute for Medical-Military Development Research "Cantacuzino" and received the approval to be produced and used at the Company’s level.

Besides this, Vimetco Extrusion made further steps towards the aerospace industry in H1 2020 and will develop together with ABC Aviation helideck platforms made in Romania. ABC Aviation is a Romanian company founded in 2007, which is active in the aerospace industry and certified by AACR (“The Romanian Civil Aeronautical Authority”) as developer and installer of aerodrome elements and infrastructure. Vimetco Extrusion will deliver aluminium profiles and high value-added products (i.e. connectors for helideck assembly) and ABC Aviation will certify the final products and take care of its proper usage.

Furthermore, SMHL, the bauxite mine division is making progress in implementing a project that consists in building an alumina tri-hydrate plant with a start-up capacity of 200,000 tonnes per annum. Currently, the first draft report was presented for internal review and it is estimated to be finalized in August 2020.

1EBITDA earnings before interest, taxes, depreciation, amortization and impairment;                                                                                                                                           

2Adjusted Net Result: Company’s net result plus/(minus) non-current assets impairment, plus/(minus) the loss/(gain) from derivative financial instruments that do not qualify for hedge accounting, plus/(minus) deferred tax.

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., 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 year of electrolytic aluminium per annum, 35,000 tonnes of recycled aluminium, and 325,000 tonnes primary cast aluminium per annum per year.

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 following this decision ALRO becomes the first company in the aluminium industry present in the two indices.  

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