Romanian aluminum producer Alro expects demand for aluminum in the construction sector to sustain through H2 2021.
However, the company’s chairman, Marian Năstase, said that the company’s ongoing issues with electrical supply may continue to hamper its profitability. In H1 2021, Alro noted that while its sales had significantly increased, annually, a surge in electricity costs due to higher power prices and a modification in electricity charges by the aluminum maker’s long-term contractors affected its net earnings.
During the first half, the Romanian company’s sales stood at RON1.53bn ($369.41mn) against RON1.36bn in the same period last year. The company attributed the increase to high demand from the automotive and construction industries as well as higher aluminum prices which increased to an average of $2,246/mt, $650/mt above H1 2020 average prices.
Still, the company reported a net loss of RON47.57mn in January-June compared to a profit of RON253mn in H1 2020 with an EBITDA amounting to RON144mn against RON439.25mn in the same period under review.