Unfavorable international aluminium pricing quotas impact on Alro Slatina’s profitability

One of the biggest aluminium companies in Romania and in Europe, Alro Slatina reported financial results for the first nine months of 2016. The company's net profit slid by 35.12 per cent from the same period of previous fiscal to stand at RON 94.25 million. Turnover in the first quarter also declined 11 per cent from the corresponding period previous year. Alro management attributed the loss in profitability to unfavorable evolution of the international pricing quotas of the aluminium.

In the first nine months of the current fiscal, Alro Slatina reported increased aluminium production of 205,400 tonnes, up 1.13 per cent YoY. Processed aluminium production totalled at 57,500 tonnes, down 3.84 per cent YoY. Revenue generation as also lower at RON 1.58 billion, a decline by 10.73 per cent compared with RON 1.77 billion in the first three quarters of 2015.

Commenting on the results Marian Nastase, president of the Administration Council of Alro, said, "The financial results of Alro in the first nine months of the year represent another proof of the business stability and of our strategy, that allows us to remain profitable in a volatile industry."

According to a release submitted to the Bucharest Stock Exchange Tuesday morning, Alro's total assets were worth RON 2.38 billion as on September 30, a rise by 3.93 per cent compared with RON 2.29 billion at the end of the last financial year.

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The aluminium price on London Metal Exchange dropped to an average of US$1.57/tonne in the first nine months of the year compared with the average of US$1.71/tonne in the corresponding interval of 2015.

Alro Slatina is controlled through the Dutch group Vimteco by Russian billionaire Vitali Machitski, holding an 84.19 per cent stake.

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