Alumina posts full-year loss of $26m
Alumina Limited (AWC) reported a net loss of $26 million for the year ended 31 December 2009, down on the $168 million profit posted a year earlier. The company did say, however, it expects to receive an improved dividend flow from AWAC in 2010.
The aluminium producer said 2009 reflected the worst of the impact of the global financial crisis on aluminium and alumina prices, resulting in an underlying loss of $2 million, compared to a $202 million profit in the previous corresponding period.
CEO, John Bevan, said the outlook for improved returns had strengthened.
”LME aluminium prices are approximately 55 per cent higher than they were at the beginning of 2009 although they remain well below 2008 averages,” Mr Bevan said.
”AWAC alumina production is forecast to increase by around two million tonnes in 2010 to meet customer demand, and average production costs are targeted to remain at the improved 2009 levels.”
He added that the major capital expenditure program in Brazil would also support the company.
Looking back, Mr Bevan said the AWAC global bauxite and alumina business remained profitable throughout the downturn and the smelters returned to profitability in the final quarter.
”Average unit costs of alumina production reduced during the year despite rising energy and freight costs and a weakening US dollar in the second half,” Mr Bevan said.
“Production capacity was increased 15% during the year with the commissioning of the expanded Brazilian operations and acquisition of the remaining 45% interest in the Suralco refinery.”
The company reported an increase in alumina production to record levels in the latter part of the year.
At the open of trade today, Alumina shares were trading down 4c to $1.56.
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