Alcoa 2020 Results: Both bauxite & alumina production up by over 1% overcoming the COVID-19 challenges

On Wednesday, January 20, Alcoa Corporation, the world’s eighth-largest aluminium producer, reported the fourth quarter and full-year results of 2020 that reflect strong operational performance. In Q4 2020, the company produced 12.2 million dry metric tonnes of bauxite compared to 12 million dry metric tonnes in Q3 2020 and 12.1 million dry metric tonnes a year ago. In the entire 2020, Alcoa’s bauxite output stood at 48 million dry metric tonnes, up by 1.27 per cent from 47.4 million dry metric tonnes in 2019.

Third-party bauxite shipments in the fourth quarter of the year grew 18.75 per cent quarter-on-quarter and 26.67 per cent year-on-year to 1.9 million dry metric tonnes, bringing the total shipments to 6.5 million dry metric tonnes in 2020 compared to 6.2 million dry metric tonnes shipments in 2019.

Alumina production in Q4 2020 stood at 3,371 thousand tonnes, down 1.58 per cent quarter-on-quarter from 3,425 thousand tonnes and flat in comparison with 3,373 thousand tonnes on year. However, total alumina production in 2020 increased 1.3 per cent from 13,302 thousand tonnes in 2019 to 13,475 thousand tonnes.

Third-party alumina shipments stood at 2,312 thousand tonnes in Q4 2020, down 9.30 per cent Q-o-Q from 2,549 thousand tonnes and 6.17 per cent Y-o-Y from 2,464 thousand tonnes. Total shipments in 2020 came in at 9,641 thousand tonnes, recording a hike of 1.77 per cent from 9,473 thousand tonnes in 2019.

Alcoa also reported a quarter-on-quarter growth of 73.21 per cent in third-party sales in bauxite from US$ 56 million in Q3 2020 to US$ 79 million in Q4 2020. In the entire year, total third-party sales in bauxite valued at US$272 million, 8.41 per cent less than US$ 297 million in 2019. Adjusted EBITDA in bauxite stood at US$ 120 million in Q4 2020 and US$ 495 million in 2020.

Third-party sales in alumina, however, decreased Q-o-Q from US$ 697 million in Q3 2020 to US$ 620 million in Q4 2020. Total third-party alumina sales value in 2020 increased from US$ 3,250 million a year ago to US$ 2,627 million. Adjusted EBITDA in alumina came in at US$ 97 million in Q4 2020 and US$ 497 million in 2020.

“In a very challenging year, we set multiple production records, exceeded our goals for cash management, and made significant progress on our multi-year strategy,” said Alcoa President and CEO Roy Harvey. “We had a very solid fourth quarter, and the work we accomplished in 2020 positions us well to capture the benefits of an improved market.

“The performance of employees across Alcoa, even throughout these unprecedented times, shows that our strategies are bringing positive results across the business,” added Harvey.