Europe’s largest aluminium producer Alro Group declared a loss of 68 million lei

Alro Group, by production capacity, one of the biggest aluminium producers in Europe, accounted for a combined turnover of 2.8 billion lei in 2019.

The preliminary financial results were made public today. The company has posted a 7% downfall and a net loss of 68 million lei, in comparison to a profit of 233 million lei in 2018. The group concluded the year 2019 with an EBIT of 99 million lei.

The reason behind the downfall was the impact of several unfavourable factors, domestic and international like trade conflicts, excess production, lower levels of demand, listing on the London Stock Exchange and higher utility prices during 2019.

Marian Năstase, President of the ALRO Board of Directors said: "Although we have continued, throughout 2019, to develop, produce and sell high and very high value-added products, our financial results have been adversely affected by various external factors, such as the international market characterized by a demand and slowing prices or the cost of energy that has continued to be volatile and rising.”

He also added that “the global aluminium market was affected last year by a 15% drop in LME's share, compared to 2018, of international policy, such as US import tariffs, China's constraints, Brexit negotiations, all of which determine customers to be cautious. On the local market in Romania, we have also encountered other adverse conditions mainly derived from prohibitive energy prices."

A similar recasting exhibited in the last quarter of 2019. During this time Alro Group reported a net loss of 45.6 million lei when compared to a net profit of 11.8 million lei in Q 2018.

Alro’s positive results in 2017 and 2018, made the company to carry out a series of investments to continue its planned objective to reach a production capacity of 120,000 tonnes of processed aluminium by 2022.

The ALRO group is incorporated by Alro SA Slatina - aluminium producer, Alum SA - aluminium producer, Sierra Mineral Holdings I, Ltd. - bauxite extraction company, Vimetco Extrusion SRL - extruded aluminium producer, Conef SA - holding company and management, Global Aluminum Ltd. - a holding company and Bauxite Marketing Ltd - marketing.