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21 FEBRUARY 2019 AL CIRCLE

Alumina Limited’s net profit after tax surges 87% in FY 2018

EDITED BY : HEENA IQBAL 2MINS READ

Alumina Limited has reported an 87% increase year-on-year in statutory net profit after tax to US$635.4 million for the full-year ended 31 December 2018. The company has declared a final, fully franked dividend of 14.1 US cents per share. This makes total dividends of 22.7 US cents per share for 2018.

Alumina’s net profit after tax excluding significant items stood at US$689.9 million in FY 2018. The company’s free cash flow rose 172% to US$662.1 million.

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Net receipts from Alcoa World Alumina & Chemicals (AWAC) stood at US$678.2 million in FY 2018, up 158% from US$263.1 million in FY 2017.

“Since 31 December 2018, Alumina has received, or is due to receive, US$193.6 million of net distributions from AWAC1 entities which have been included in the final dividend, it said.

Alumina's Chief Executive Officer, Mike Ferraro, said, "This is a record result for our Company, culminating in the highest profit and largest annual dividend paid to shareholders in our history. The Company has declared a final dividend 52% higher than last year and 2018 total dividends up 68% over the previous year. Alumina Limited'sunrivalled focus on alumina has delivered outstanding returns to shareholders.

"The Western world alumina market remained tight following severe supply disruptions in 2018 with the average realised alumina price up 33% on 2017. AWAC contained production cost increases to 14% over the same period despite higher raw material costs and some production issues across the system.

"In 2019 the alumina market is expected to be broadly balanced as limited new capacity matches higher demand from smelters. The resumption of full production at the Alunorte refinery remains uncertain but we have assumed a restart in 2Q 2019 in our assessment of a balanced market. The alumina price has averaged US$380 per tonne since 1 January 2019 which delivers a significant margin for AWAC's low cost assets. Alumina Limited is one of a kind, with the largest net economic exposure to the third-party smelter-grade alumina market outside China."


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EDITED BY : HEENA IQBAL 2MINS READ

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