Chalco’s Q3 profit falls 84% on higher costs; aluminium production down 10%

Aluminium Corporation of China Limited, known as Chalco, reported an 83.9% drop in its third-quarter net profit due to higher costs. Chalco’s net income amounted to 102.61 million yuan ($14.52 million) in July-September, compared to a restated figure of 639.03 million yuan a year earlier, according to a Reuters reports.

Operating revenues was up by 17.2% year-on-year to 50.77 billion yuan but the total cost of operations surged 20.5% to 50.35 billion yuan.

The result marked Chalco’s lowest profit since the fourth quarter of 2017, excluding a net loss in October-December last year.

In January- September, profits stood at 808.37 million yuan, representing a drop of 47.7% year-on-year.

The company’s aluminium production totalled 950,000 tonnes in the third quarter, a 10.4% year-on-year fall, in a data sheet for analysts reviewed by Reuters. Sales of aluminium were down by 13.8% to 940,000 tonnes, indicating lacklustre demand in China.

Its production still topped United Company Rusal, which produced 942,000 tonnes in Q3, retaining Chalco’s spot as the world’s second-biggest listed producer of the metal after China Hongqiao Group.