In 2011, Alro posted a net profit of RON218 million.
“Alro capitalized on its investments and was able to meet its operating targets. However, overall costs were heavily impacted by unforeseen external factors, such as factors related to the electricity supply chain,” said Marian Nastase, Alro’s Board Chairman.
Alro’s operating profit fell 30% on the year to RON289 million, largely due to lower demand and higher utility costs.
The company said electricity costs rose to RON831 million in 2012, from RON659 million in the previous year.
Due to a severe drought in the first half of 2012, Alro had to buy electricity at higher prices, the company noted. Additionally, Alro was directly affected by an insolvency procedure filed by its largest energy supplier, state-run hydropower generator Hidroelectrica.
The company reported total revenue of RON2.3 billion in 2012, slightly up from RON2.25 billion a year earlier.
Raw aluminum output reached 249,000 tons, down from 261,000 tons in 2011. The company processed 64,000 metric tons of aluminum, compared with 54,600 metric tons in the previous year.
Dutch-based Vimetco controls 84.19% of Alro’s shares, while the remaining shares are distributed among various holders.
Thursday, Alro’s shares closed flat at RON2.245 in Bucharest. (EUR1=RON4.3698)