Vimetco narrows FY pretax loss

Vimetco narrowed its FY pretax loss to $0.16m, from a loss of $0.19m. Revenue was $2.2m, from $2.3m. The total production of electrolytic aluminium decreased to 869,000 tonnes, from 925,000 tonnes in 2012, and the production of processed products increased at 189,000 tonnes, up from 171,000 tonnes in 2012. CEO Gheorghe Dobra said last year was a testing one, with low demand and prices that followed the same downward trend combined with continued increases in raw material costs. However, Vimetco remained focused on our long-term development strategy to increase the output and sales of high added value products, while, in the short term, it developed and implemented new technologies to support its constant engagement to reduce costs.

In December 2013, the aluminium quotation reached the lowest level in the last four years, when it decreased below USD 1,700/tonne, as a result of a weak demand. This coupled with the higher than expected energy prices, impacted significantly Vimetco's FY results. "In order to mitigate the situation, Vimetco focused on achieving improved technological consumptions, both in Romania, and in China, but also diversified its production sources, by developing scrap-recycling technologies and, thus, partially cutting down electricity consumption," Dobra said. "As a result, our output of primary aluminium decreased by 5%, while the production of processed aluminium increased by 10% in 2013 as compared to 2012." "The solid results we registered in terms of the efficiency of our operations give us the confidence to pursue our long-term strategy of vertical integration and consolidation of our business. "