ALRO Group turnover slightly lower in 2019, to 2.78 billion RON

ALRO, one of the largest vertically integrated aluminium producers in Europe, measured by production capacity announces today its consolidated and separate financial full-year 2019 results. ALRO Group registered a turnover of 2.78 billion RON, slightly lower compared to the similar period of 2018, namely 2.98 billion RON , mainly as a result of the unfavourable international and national market conditions.

In 2019, the Group registered a net loss of 67 million RON compared to a net profit of 235 million RON, in 2018. The significant decrease in results was a direct consequence of a continuous downward trend of the LME and tough conditions on the international market (including US Government policies regarding the imposed aluminium tariffs, US-China trade war, the Brexit negotiations, higher costs for utilities and on the alumina segment, Norsk Hydro’ Alunorte alumina refinery restarting its production), as well as on the local market, where the Company had to face increased prices especially for energy that continued to report high levels in 2019.

“Facing adverse circumstances in the market, where LME showed a 15% decrease in 2019 compared to 2018, alumina market affected by excess output that led to downward selling prices, higher utility prices (energy and gas) in 2019 versus 2018, with increased acquisition prices for 2020, we implemented an anti-crisis program containing cost reductions and cash flow optimization measures for H2 2019 and 2020”, said Marian Nastase, Chairman of the Board of Directors of ALRO. “We postponed the investments except the maintenance CAPEX and those compulsory from an environmental and energy efficiency point of view, we lowered the inventories level, we minimised the scrap acquisitions in line with the flat-rolled products demand. Furthermore, we reduced the raw materials level, limited the aluminium electrolytic production by decreasing the energy intensity and delaying some capital repairs for the pots, collectively with a change in sales mix structure by raising the quantities of very high value added products. All these measures helped us to limit our losses for 2019”.