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ALRO Reports Results for Hl of 2020

Metal News - Published on Thu, 13 Aug 2020

Image Source: ALRO Coronavirus COVID19
One of the largest vertically integrated aluminium producers in Europe ALRO SA announces its consolidated financial results for the six months ended 30 June 2020. The Group's turnover registered a slight decrease mainly due to market conditions that affected all players in the aluminium industry and due to the crisis caused by the COVID-19 pandemic. ALRO Group's net profit was around RON 254 million in Hl 2020 (Hl 2019: RON 80 million) and the operating result (EBIT) increased to RON 343 million in Hl 2020 (Hl 2019: RON 166 million) thanks to the fact that the Romanian authorities have approved the implementation of the EU-ETS compensation scheme based on the EU decision and thus the high invoice for the energy was partially compensated.

ALRO Chairman Marian NASTASE said "The earnings for Hl 2020 were affected due to a combination of factors, lower LME prices on international markets and impact of COVID-19 over the demand levels, partially mitigated by the efficiency of our operations and previously implemented cost-savings measures. Moreover, recovery signs are already visible in the market, the LME quotations on the international markets show in H2 2020 an upward trend and steady levels above 1,650 USD/tonne. Through these developments and by implementing even stricter controls and savings measures to improve the cash-flow, increasing our competitiveness through human capital, integration of state-of-the-art technologies and by providing nigh-quality and value-added products, we are confident that we can maintain the long lasting relationships with our customers while attracting and building new ones. In the context of the new requirements of the European Green Deal, we wilT focus on the products mix for increasing the high and very high value-added products, continue to invest in energy efficiency projects and to direct capital towards long-term environmentally sustainable investments having innovative technology with the aim to remain a viable choice for all investors that are interested in green investment opportunities."

In Hl 2020. the aluminium industry faced a drop and reported an average of 1,595 USD/ tonne from an average of 1,791 USD/tonne in 2019; however, from 1,450 USD/tonne in April and May, LME bounced back to quotations of over 1,650 USD/tonne in July 2020.

In Hl 2020 the global primary aluminium market was affected by a surplus of capacity and overloaded inventories, and thus the primary aluminium consumers such as rolling mills and extrusion plants have faced the falling demand for their products, reduced or suspended operations. While the downstream and end-use aluminium sectors have been closing production units, aluminium smelters have generally continued to operate. Moreover, the two main market segments for aluminium industry, aerospace and automotive, have been strongly hit by COVID-19 pandemic, effects which have been translated in the Company s revenues.

Since an early stage of the COVID-19 pandemic outbreak, ALRO has implemented complex protocols and procedures in coordination with central and local authorities and compliance with the recommendations of the World Health Organization for industrial sites. Thus it managed to ensure the health of its employees, preventing infections and securing a continuous supply chain for its business partners and clients. Besides this, ALRO has tested its most exposed employees for COVID-19 and has its own healthcare office, open 24/7 to monitor its staff s health.

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Posted By : Yogender Pancholi on Thu, 13 Aug 2020
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