PERTH (miningweekly.com) - Aluminium major Alumina has reported a net loss after tax of $62.1-million for the full 2012, compared with a net profit of $126.6-million last year, as aluminium prices declined.
Revenue for the period was also down to some $5.8-billion, compared with the $6.6-billion reported in the previous financial year, while earnings before interest, taxes, depreciation and amortisation was down to $335.5-million, compared with the more than $1-billion in the previous corresponding period.
“It was a tough year for the industry and this has resulted in the company recording a loss, reversing the improvement in profits of prior years,” said Alumina CEO John Bevan this week.
“Given the decline in cash flows received from the Alcoa Worldwide Alumina and Chemicals (AWAC) joint venture during 2012 and the continued uncertain outlook, the board has determined that no final dividend will be paid for the year,” Bevan added.
The AWAC unit reported a net loss after tax of $91.9-million during the quarter, compared with a profit of $469.7-million in 2011.
However, Bevan said this week that despite the difficult market conditions, the company was heartened by the sound operational performance from AWAC, and the progress made on initiatives that would ultimately strengthen Alumina’s position and improve returns to shareholders.
“Production creep at our low-cost refineries, planned curtailments at our higher-cost refineries, and hard-won productivity improvements across the board ensured that costs were controlled and the operations continued to generate cash,” he added.
Bevan said that significant improvements were also achieved in the financial and operating performance at the Alumar refinery and the Juruti mine, in Brazil, while the Point Comfort refinery benefited from step-change improvements in energy costs, which have improved the operation’s competitiveness.
The Australian refinery operations continued to operate at near or above nameplate capacity throughout the year.
Meanwhile, the development of the Ma’aden refinery, in Saudi Arabia, was progressing on time and within budget. The project would be commissioned in 2014.