Press Releases
Press Releases

Alro registered a net loss of RON 24 million, in 2015

Tue, 29/03/2016 - 11:52

Alro S.A.

  • Turnover of RON 2.3 billion, in 2015, compared to RON 2 billion, in 2014
  • EBITDA of RON 223 million, in 2015, compared to RON 115 million, in 2014
  • Net loss of RON 24 million, in 2015, from RON 108.6 million, in 2014
  • Adjusted net profit of RON 45 million, in 2015, from a net adjusted loss of RON 134 million, in 2014
  • Primary aluminium sales of 145,329 tonnes, in 2015, compared to 139,831 tonnes, in 2014
  • Processed aluminium sales of 77,273 tonnes, in 2015, compared to 76,868 tonnes, in 2014

Alro Group

  • Turnover of RON 2.4 billion, in 2015, compared to RON 2.1 billion, in 2014
  • EBITDA of RON 306 million, in 2015, compared to RON 153 billion, in 2014
  • Net loss of RON 18 thousand, in 2015, from RON 63.5 million, in 2014
  • Adjusted net profit of RON 76.5 million, in 2015, from a net adjusted loss of RON 122 million, in 2014

Slatina, March 29th 2016 – Alro S.A. (BSE: ALR, “the Company” or “Alro”), the biggest aluminium producer from continental Europe (excluding Russia and the Scandinavian Peninsula), registered a net loss of RON 24 million, in 2015, compared to RON 108.6 million, in 2014. The adjusted net profit* was of RON 45 million, in 2015, compared to an adjusted net loss of RON 134 million, in 2014. The Company’s turnover increased to RON 2.3 billion, from RON 2 billion, in the previous year.

„The financial results of Alro show that the strategy applied by us was a correct one and led to the decrease of the production costs, in the same time with the expansion of our portfolio and increase of sales of high processed products”, said Marian Nastase, President of the Board of Alro. „On the other hand, the events that are not under our control and that we couldn’t have anticipated, have maintained the Company in the net loss area, despite a better operating profit”.

The financial results of Alro were negatively influenced by the recent amendments of the legislation regarding the aquisition of green certificates. Thus, the Company will pay approximately USD 11 million extra for the GC for 2015, due to the amendments, from February this year, of the Government Decision 495/2014, for the exemption of some categories of final consumers from paying a quota of the green certificates. When it prepared the preliminary financial results for 2015, Alro included the 85% exemption from paying GV for the entire year of 2015, but the amendment of the legislation in February 2016 stipulated the application of this exemption from the month when the authorities issued the agreement, respectively June 2015 in the case of Alro.

Moreover, at the international level, the aluminium market dropped, in 2015, reaching a minimum of USD 1,424/tonne, compared to USD 1,642 per tonne, in 2014. To compensate this decrease, Alro continued to invest and increased the production capacity for high added value products as well as the operational and energy efficiency.

Last year, the total primary aluminium production was of 271,000 tonnes, increased from 263,000 tonnes, in 2014. The processed aluminium production almost reached 79,000 tonnes, compared to 78,000 tonnes, in 2014.

In 2015, Alro registed an increase of sales for the high and very high added value products, both in the primary, but also in the processed aluminium sector. Thus, in the primary aluminium sector, the Company registered an increase of sales for wire rod with approx. 4,500 tonnes and in the processed aluminium sector, an increase with over 1,000 tonnes for coils. Thanks to the improvement of the mix of products sold, the net marjin increased to 14%, compared to 8%, level registered in 2014.

Under these circumstances, Alro registered an EBITDA of RON 223 million, in 2015, compared to RON 115 million, in 2014. The net adjusted profit was of RON 45 million, last year, compared to a net adjusted loss of RON 134 million, in 2014.

In its turn, Alro Group had consolidated sales of RON 2.4 billion, in 2015, increased from RON 2.1 billion, the level registered in 2014. The Group had a loss of RON 18 thousand, last year, from RON 63.5 million, in 2014. The operating results improved in 2015, when the Group registered an EBITDA of RON 306 million, from RON 153 million, in 2014. The net adjusted profit was of RON 76.5 million, in 2015, from a net adjusted loss of RON 122 million, in 2014.

The financial results are available in a separate document on the website of Alro S.A.: www.alro.ro

* Adjusted 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.

Given the significant impact generated by the mark to market of the derivative financial instruments that do not qualify for hedge accounting, starting with the first quarter of 2013, Alro’s management considers the Adjusted Net Result as a more relevant indicator for the financial performance of the Company.

The figures for Alro S.A. included in this press release represent the Company’s financial results, reported in accordance with the Order of the Ministry of Finance no. 1286/2012 with the updated amendments, which is in accordance with IFRS, as adopted by the European Union, except for IAS 21 The effects of changes in foreign exchange rates.

 

For further information please contact:

www.alro.ro

Florenta Ghita

Premium Communication

Bucharest

Phone +40 (0) 21 411 01 52

Email florenta.ghita@premiumpr.ro

 

Notes to the Editors:

Alro is subsidiary of Vimetco N.V., a global, vertically-integrated primary and processed aluminium producer. Alro is one of the largest aluminium producers in Central and Eastern Europe measured by volume with an installed production capacity of 265,000 tonnes per year.

The main markets for the aluminium manufactured by Alro are within the EU (Hungary, Poland, Greece, Germany and Romania). Alro also exports to the US and Asia. Alro is ISO 9001 certified for quality management and has NADCAP as well as 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.

The contents of the website www.alro.ro are not incorporated into, and do not form part of, this announcement.

Alro Group

The companies part of Alro group are: Alro – the aluminium producer, Alum Tulcea – the alumina producer, Siera Mineral Holdings I, Ltd. – the bauxite producer, Vimetco Extrusion – extrusion products processor, Conef, Global Aluminium Ltd. and Bauxite Marketing Ltd. Having this structure, the Group created an integrated production chain, assuring the raw materials for Alro.