It said the loss was a result of mixed external local and international adverse factors, such as trade conflicts, excess output, lower demand and LME prices and higher prices for utilities during 2019.
The group ended 2019 with an EBIT of RON99 million.
“Although we have proceeded throughout 2019 to develop, manufacture and sell high value-added and very high value-added products, our financial results were negatively affected by various external factors like slow international market in terms of demand and prices or the cost of energy which continued to show volatility and higher prices.” said Marian Nastase, chairman of Alro’s board of directors.
He added the global aluminium market was affected in 2019 by a 15% LME decrease YoY, by international politics, such as the US tariffs on imports, the Chinese retaliation, the Brexit negotiations, instilling caution in clients.
“On the local Romanian market, we have faced further adverse conditions, mainly derived from the prohibitive energy prices,” said Nastase.
In the fourth quarter, Alro posted a net loss of RON45.6 million, compared with a net profit of RON11.8 million in the same period in 2018.
Alro Group consists of 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 SA alone posted a loss of RON43 million in the fourth quarter, compared with a net profit of RON23 million in the fourth quarter of 2018.
Alro’s majority shareholder is Vimetco, which holds 54.19%, while Paval Holding holds 23.21%, and Fondul Proprietatea holds 10.21%.