COVID pandemic drove Rusal’s Aughinish Alumina to loss in 2020

The globally most technologically advanced and energy-efficient alumina refinery and Europe's largest operated by Rusal in Ireland, Aughinish Alumina drove into a loss in 2020, as the Covid-19 pandemic hit demand for alumina from one of the biggest aluminium smelters of Europe.

During the filling at Companies Registration Office (CRO), the Aughinish Alumina Ltd located at Limerick county revealed a drop in revenue by a quarter to €436 million.

The report reflected a loss of $19.8 million from a remarkable profit of €52 million in 2019, the first year after the Rusal-owned plant was removed from the US sanctions list that had restricted its ability to trade with US entities. However, the management has pointed their fingers towards an unfavourable market for alumina last year for the loss.

As the market was hit hard by the covid-19 pandemic, which initially eroded demand from manufacturers, but the market rebounded strongly so far in 2021.

The latest accounts signify that the management in Aughinish Alumina no longer sees an impending risk of being on the wrong side of another US clampdown, having not listed it among potential near-term risks to the business.

The Aughinish Alumina refinery owned by Rusal in 2018 captivated by the sanctions due to its roots in Russian oligarch Oleg Deripaska.

The sanctions imposed, as Deripaska had been linked by the US to Russian President Vladimir Putin and former Trump campaign manager Paul Manafort. Oleg Deripaska subsequently cut his stake in Rusal as part of an agreement with the US to lift sanctions.

The 2019 accounts for Aughinish Alumina Refining Ltd stated: “All banking and supply chains that had been impacted by the imposition of the sanctions returned to normal activity following the lifting of sanctions.”

The 2020 accounts also delivered a note that the alumina refinery which employs around 450 staff were permitted to operate throughout the lockdowns in 2020 because it was classified as an essential service.