December 02, 2008

Zaporizhya Aluminium net income in 2007 down by 20.6% YoY

Zaporizhya Aluminium Plant announced that its net income decreased to USD 15 million down by 20.6% YoY in 2007.

The released added that ZALK earned a net loss of USD 3.7 million in Q4 2007 against net profit of USD 2.6 million in Q3 2007. The news is neutral for ZALK as the net income in 2007 is in line with our expectations. Global aluminum prices dropped significantly in July 2007.

Millennium Capital analysts said that “On the background of rising electricity tariffs down by 30% YoY last year this caused the net income of ZALK to drop in the last two quarters. Though the plant did not manage to lobby special tariffs regulation for itself in February, 2008 we believe that ZALK could be profitable this year as the prices for aluminium could grow from USD 2640 in 2007 to about USD 3500 in 2008 thanks to the electricity crises that happened this year in China and SAR. This could generate global aluminum supply limitations this year.”

(Sourced from Millennium Capital)