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Alro Group, one of the largest vertically integrated aluminum producers in Europe, recorded a turnover of 2.1 billion RON in H1, up 39 percent compared to the same period last year, mainly as a result of an increased international demand for aluminum, shows a release sent to the Bucharest Stock Exchange on Friday.
Alro Group's H1 2021 turnover stood at 1.5 billion RON.
The group posted a net profit of 15.3 million RON in the first half of 2022, in a massive improvement from the net loss of 47.6 million RON recorded in the same period of 2021, "as a result of quick and decisive measures implemented at Group level to reduce the effect of unsustainable energy prices".
The Group's EBITDA increased to 219.6 million RON, compared to 144 million RON in H1 2021.
"In the first half of 2022, the slowdown in demand, the very high levels of inflation and record-high interest rates have put additional pressure on companies, forcing us to prove adaptability and change our business model starting from 2022. Consequently, we decided to temporarily suspend production at three Alro pot rooms starting from January 2022 and the entire alumina production of ALUM, starting with August 2022. We took these decisive steps, taking into account a series of technological measures that allow a quick and efficient restart as soon as the energy market returns to normal," said president of the Alro Board of Directors Marian Nastase.
He also specified that the new business model applied in H1 2022 has proven successful; thus, the group focused on purchasing cold primary metal from the market to maintain or even increase its output of processed products, while adjusting at the same time its production of less profitable aluminium goods.
"As a result, we achieved increased sales of processed aluminum products, taking advantage of the strong demand for plates for the aeronautical sector and extruded products," Marian Nastase said. AGERPRES
