The investment allowed Alro to reduce its electricity consumption by roughly 10% and cut gas consumption by some 30% compared with 2003.
Alro is Romania’s largest energy consumer, with about 3 TWh per year.
Between 2003 and 2011, the company bought energy from hydropower producer Hidroelectrica at low prices and its profits surged. After Hidroelectrica entered insolvency in 2012, Alro’s direct energy sale contract with the hydropower producer was terminated and the aluminum smelter had to pay higher energy prices, which increased its production costs.
Alro reported loss of 17 million lei (EUR3.9 million) for the first half of 2013.
The company was privatized in 2002 and in 2012 registered loss for the first time, of RON170 million lei (EUR38.4 mil. euro).
Alro reported turnover of RON2.3 billion for 2012. Its electricity, water and gas costs amounted to RON868 million, or over 37% of its turnover. In 2004, the company registered turnover of RON1.406 billion, while electricity, water and gas expenses were at RON371 million, or 26% of turnover.
Alro is 87%-controlled by Vimetco, owned by Russian billionaire Vitaly Machitski. Romanian investment fund Fondul Proprietatea (FP.RO) holds a 10.2% stake in the company.
Alro’s market capitalization stands at RON1.07 billion (EUR240 million).