Alro, which is the largest aluminum smelter in Eastern Europe, posted a net loss of 216.4 million lei (EUR49 million) in January-September, compared with a net profit of RON39.4 million in the similar period a year ago.
“Alro increased its sales of processed aluminum, as part of its long-term strategy to focus on high value added products, but due to factors that we cannot control, such as the international aluminum market and the energy taxes, the company continues to report losses”, said Marian Nastase, Chairman of the Board with Alro.
The sales volume of aluminum products increased by 1% compared to the similar period of 2013, as the sales of processed aluminum rose 7%, while the sales of primary aluminum went down 3%, with more slabs being internally used in order to support the increase of the value added production, the company said in statement.
But the net result was hurt by the low level of the aluminum price on the international market and the high eco-taxes. “For example, only in 2014, the company had to pay around RON90 million for the green certificates quota for 2013, while during the same period of 2013 it paid around RON34 million for the green certificates quota for 2012.”
Following the decline of international prices, despite the slight increase in volumes, Alro reported sales revenue of RON1.44 billion in the first nine months, down 4% from RON1.5 billion in the year-earlier period.
The company said its adjusted net loss widened to RON115 million from RON21 million in January-September 2013.
The adjusted result is the net result plus/minus non-current assets impairment, plus/minus the loss/profit 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, Alro’s management considers the adjusted net result as a more relevant indicator for the financial performance of the company.”