ECONOMY FINANCE&BANKING

Alro Slatina’s financial results , influenced by the legislation of green certificates

Alro S.A., the biggest aluminium producer from continental Europe (excluding Russia and the Scandinavian Peninsula), registered a net loss of RON 24 million, in 2015, compared to RON 108.6 million, in 2014. The adjusted net profit was of RON 45 million, in 2015, compared to an adjusted net loss of RON 134 million, in 2014. The Company’s turnover increased to RON 2.3 billion, from RON 2 billion, in the previous year.

„The financial results of Alro show that the strategy applied by us was a correct one and led to the decrease of the production costs, in the same time with the expansion of our portfolio and increase of sales of high processed products”, said Marian Nastase, President of the Board of Alro. „On the other hand, the events that are not under our control and that we couldn’t have anticipated, have maintained the Company in the net loss area, despite a better operating profit”.

The financial results of Alro were negatively influenced by the recent amendments of the legislation regarding the aquisition of green certificates. Thus, the Company will pay approximately USD 11 million extra for the GC for 2015, due to the amendments, from February this year, of the Government Decision 495/2014, for the exemption of some categories of final consumers from paying a quota of the green certificates. When it prepared the preliminary financial results for 2015, Alro included the 85% exemption from paying GV for the entire year of 2015, but the amendment of the legislation in February 2016 stipulated the application of this exemption from the month when the authorities issued the agreement, respectively June 2015 in the case of Alro.

Moreover, at the international level, the aluminium market dropped, in 2015, reaching a minimum of USD 1,424/tonne, compared to USD 1,642 per tonne, in 2014. To compensate this decrease, Alro continued to invest and increased the production capacity for high added value products as well as the operational and energy efficiency.

Last year, the total primary aluminium production was of 271,000 tonnes, increased from 263,000 tonnes, in 2014. The processed aluminium production almost reached 79,000 tonnes, compared to 78,000 tonnes, in 2014.

In 2015, Alro registed an increase of sales for the high and very high added value products, both in the primary, but also in the processed aluminium sector. Thus, in the primary aluminium sector, the Company registered an increase of sales for wire rod with approx. 4,500 tonnes and in the processed aluminium sector, an increase with over 1,000 tonnes for coils. Thanks to the improvement of the mix of products sold, the net marjin increased to 14%, compared to 8%, level registered in 2014.

The main markets for the aluminium manufactured by Alro are within the EU (Hungary, Poland, Greece, Germany and Romania). Alro also exports to the US and Asia. Alro is ISO 9001 certified for quality management and has NADCAP as well as EN 9100 certificates for aerospace production organizations. Alro’s products adhere to the quality standards for primary aluminium on the LME, as well as international standards for flat rolled products.

 

 

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