Alro has not published 2013 preliminary financial figures, which are due out on February 17, but the budgeted indicators point to a sales pickup. In 2012, Alro reported revenue of RON2.08 billion, down 7.7% against 2011, and losses of RON155 million, according to public bourse data.
Sales declined further in 2013, as the company for the first nine months of the year posted 10.9% lower revenue, to RON1.55 billion.
The negative trend came amid the falling aluminum prices on the London metal exchange. Since the start of the year, aluminum spot prices fell by 6.5%, from $1,755/ton to $1,641/ton, while December futures trade at around $1,845/ton.
However, Alro has drawn up its budget taking into account a price of $1,900/ton.
One of Alro’s main problems is the high electricity costs. Also currently has a long-term contract with Hidroelectrica, receiving 3TWh of electricity per annum at a minimum price of RON180/MWh. Alro costs rose compared to the previous contract it had with Hidroelectrica.
Meanwhile, energy prices on the OPCOM market for bilateral contracts dropped to RON170/MWh, so that Alro has come to pay a bigger price to Hidroelectrica than if it had bought energy directly from the market.
Alro and metallurgy industry companies, where electricity consumption is very high, have been forced to buy more and more green certificates in recent years, which drove their operating costs higher.
Last year, the government decided to cut the number of green certificates granted to companies generating wind and solar power, but industry producers complained the effect of this decision is wiped out by the rising number of projects in operation.
Thus, metallurgy industry companies asked the Economy Ministry to cap the taxes they pay for green energy. The profit Alro has budgeted for this year counts on a favorable answer from authorities.
(English version by Catalina Apostoiu)