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Alro, one of the biggest energy consumers in Romania, reported, for 2014, a preliminary adjusted net loss of 141 million lei, compared to an adjusted net loss of 86 million lei, in 2013 (according to international financial reporting standards, IFRS). The Company’s turnover increased by 2% in 2014, compared to the one reported in 2013, to 2 billion lei, from 1.95 billion lei, in the previous year.
The results of the Company were significantly influenced, in 2014 as well, by the costs with the eco-taxes generated by the overcompensation scheme for the renewable energy sector, Alro incurring 550 million lei costs with green certificates and cogeneration tax in the last four years, out of which 130 million lei in 2014, reveals a press release received by energynomics.ro.
“The measures we have taken to increase the efficiency of our operations, respectively to decrease the energy costs and the approximately USD 500 million investments, which have been made during the last 10 years, helped us to obtain a positive operating result, even though several external factors continued to negatively impact the final result”, said Marian Năstase, President of the Board of Alro S.A.
„The energy taxes, the low aluminum prices on the international markets and the significant appreciation of the US dollar, during a very short period of time, in December influenced our results and thus we continued to report losses this year, as well. However, we are confident that the recent measures to decrease by up to 85% the green certificates quota for the industry, which were approved at the end of 2014, will have a positive impact on our activity. These measures, together with the latest technologies implemented and with the efficiency increase measures, will allow us to continue our long-term development strategy”, added Marian Năstase.
Alro yields, yet, an operational profit
Furthermore, 2014 continued to be marked by low aluminum prices on the London Metal Exchange (LME), a new 5 years bottom being hit in February 2014 at 1,642 USD/ton, although the annual average was similar with the one in2013, i.e.: 1,867 USD/ton, compared to 1,845 USD/ ton.
In this difficult international context, which has witnessed several reorganizations and aluminum smelters shut-down since 2013, Alro continued its programs focused on increasing the efficiency, in order to maintain its competitiveness at international level.
Thus, after the Company’s commissioning of the scrap aluminum facility, it registered positive results both regarding the energy and raw materials consumption levels. Alro managed constantly to increase its sales of high added value products for which the profit margin is higher.
Under these circumstances, Alro registered a positive EBIT of 51 million lei, compared to a negative EBIT of 211 million lei, in 2013. The Company continued to focus on developing the processed aluminum segment.
Last year, the total primary aluminum production was of 263,000 tons, while the processed aluminum production was of 78,000 tons, a level higher by 7,000 tons than in 2013. In 2014, Alro registered an increase of the sales for the added value products, by 6,000 tons, while the primary aluminum segment reported similar sales as in 2013.
