Alro SA (BSE: ALR, “The Company” or “Alro”), one of the largest aluminium producers in Central and Eastern Europe, announces today its financial results, prepared in accordance with the International Financial Reporting Standards (IFRS) for three months ended on 31 March 2015.
In Q1 2015, the Company registered a turnover of RON 598 million, up from RON 496 million in the similar period of 2014. Alro returned to profit in the analysed period, reporting an adjusted net profit of RON 23 million, compared to an adjusted net loss of RON 44 million in Q1 2014. Moreover, the Company registered a positive EBIT of RON 96 million, after it reported in Q1 2014 a negative EBIT of RON 39 million.
“Once again our results prove that we have a sound and strong business, that we took the correct measures to reduce costs and to adapt to the international context, and that we focused on the correct product mix. However during the first quarter our cash flow was severely hit by the payment we had to make for the 2014 full quota of green certificates, our Company being forced to contract additional financing to support it.”, said Marian Nastase, President of Alro’s Board of Directors. “Nevertheless considering the finalization of the legislation regarding the exemption of the big energy industrial consumers from acquisition of green certificates, we are confident that the payment we made during Q1 2015 for the full quota is the last one, subsequently having to pay only the reduced quota, which can be supported by the Company’s cash flows during the next period. In addition we reduced production costs to the lowest possible levels considering our technology and the current economic environment, and we also adjusted the product mix and quality, all these measures contributing to our final result for the period”.
During the first quarter of 2015, Alro continued to focus on supplying high value added products, increasing its processed aluminium production to approximately 20,900 tonnes, from 20,100 tonnes in Q1 2014. The total primary aluminium production increased in Q1 2015 to 66,300 tonnes, from 62,600 in Q1 2014.
The aluminium sales increased in value, as well as a result of higher spot aluminium quotations on the London Metal Exchange, from an average of 1,708 USD/tonne in Q1 2014, to an average of 1,800 USD/tonne during the first quarter of this year.
In spite of the improved operating results, the strong appreciation of USD against RON had also a less favourable impact in the net result of the Company mainly due to the revaluation of the USD denominated debts, which generated a loss of RON 61 million for Q1 2015, leading to a net profit of RON 6 million, compared to a net loss of RON 138 million in Q1 2014.