Chinese aluminium giant Chalco reported a 19.4 per cent drop in the first quarter net profit due to lower aluminium prices.
The company’s net profit declined to 308.6 million yuan ($48.94 million) in the first three months of 2018 as against 382.9 million yuan in the corresponding period last year.
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The company said in a filing to the Shanghai stock exchange that it generated revenue of 36.7 billion yuan, down 10.5 per cent, according to a report published by Reuters.
The price decline continued in January-March period, with Shanghai aluminium futures falling 10.6 per cent, the worst quarter since the middle of 2010, as Chinese inventories rose, Reuters reported.
According to a filing to the U.S. Securities and Exchange Commission, the company produced around 3.61 million tonnes of aluminium in 2017.
In 2017, Chalco’s net income was 1.38 billion yuan mainly due to higher aluminium prices. Revenue was 180.1 billion yuan, up from 144.2 billion yuan a year earlier.
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