Alro reported operating profit, having a preliminary adjusted net loss of RON 141 million, in 2014

“The measures we have taken to increase the efficiency of our operations, respectively to decrease the energy costs and the approximately USD 500 million investments, which have been made during the last 10 years, helped us to obtain a positive operating result, even though several external factors continued to negatively impact the final result”, said Marian Nastase, President of the Board of Alro S.A.

„The energy taxes, the low aluminium prices on the international markets and the significant apreciation of the US dollar, during a very short period of time, in December influenced our results and thus we continued to report losses this year, as well. However, we are confident that the recent measures to decrease by up to 85% the green certificates quota for the industry, which were approved at the end of 2014, will have a positive impact on our activity. These measures, together with the latest technologies implemented and with the efficiency increase measures, will allow us to continue our long-term development strategy”, added Marian Nastase. The results of the Company were significantly influenced, in 2014 as well, by the costs with the         eco-taxes generated by the overcompensation scheme for the renewable energy sector, Alro incurring RON 550 million costs with green certificates and cogeneration tax in the last four years, out of which RON 130 million in 2014. Furthermore, 2014 continued to be marked by low aluminium prices on the London Metal Exchange (LME), a new 5 years bottom being hit in February 2014 at 1,642 USD/ tonne, although the annual average was similar with the one in 2013, i.e.: 1,867 USD/ tonne, compared to 1,845 USD/ tonne. In this difficult international context, which has witnessed several reorganisations and aluminium smelters shut-down since 2013, Alro continued its programmes focused on increasing the efficiency, in order to maintain its competitiveness at international level. Thus, after the Company’s commissioning of the scrap aluminium facility, it registered positive results both regarding the energy and raw materials consumption levels. Alro managed constantly to increase its sales of high added value products for which the profit margin is higher. Under these circumstances, Alro registered a positive EBIT of RON 51 million, compared to a negative EBIT of RON 211 million, in 2013. The Company continued to focus on developing the processed aluminium segment. Last year, the total primary aluminium production was of 263,000 tonnes, while the processed aluminium production was of 78,000 tonnes, a level higher by 7,000 tonnes than in 2013. In 2014, Alro registered an increase of the sales for the added value products, by 6,000 tonnes, while the primary aluminium segment reported similar sales as in 2013.