Alumina H1 profit plummets amid tough market conditions

<p>Alumina Ltd. ended the first half of 2016-17 financial year on a glum note. The dual-listed mineral company's H1 net profit went down to $US7.8 million ($A10.2 million) from $US122 million same period previous year, amid high market volatility. <br /><br />The financial result for the period under review was impacted upon by lower realised prices by its AWAC joint venture with aluminium giant Alco, in addition to impairment charges against various assets.<br /><br />Other highlights:<br /><br />&bull; EBITDA decreased by US$450 million to US$281 million<br />&bull; EBITDA margin for alumina of US$46 per tonne<br />&bull; Cash for operations declined by $561 million to negative $240 million<br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/Alumina%20Results.jpg" alt="News" width="685" height="319" /><br />Alumina CEO Peter Wasow said, &ldquo;The company delivered a strong financial performance despite tough market conditions, reflecting in part the benefits of restructuring the AWAC portfolio and a focus on cost cutting within AWAC ... Third party bauxite sales continue to expand and we have a number of options to capture market opportunities as they arise. Finally, both Alumina and AWAC continue to maintain a conservative financial profile with very low levels of debt." <br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/Alumina%20Ltd.jpg" alt="News" width="960" height="413" /><br /><br />Sources close to Alumina said, the company expects the demand for alumina and bauxite to improve in the coming quarters, with productivity gains and portfolio realization supporting margins from falling further. <br /><br />Alumina has declared a fully franked interim dividend of US2.9 cents a share, down from US4.5 cents a year ago, company sources reported.&nbsp;&nbsp;</p>