PERTH (miningweekly.com) – Aluminium major Alumina Limited has swung back to profit in 2013, reporting after-tax net profit of $0.5-million, compared with a net loss of $55.6-million in 2012.

However, its underlying loss was $2.7-million, and included a $16-million charge in relation to the settlement of bribery charges with regards to certain contracts with Aluminium Bahrain (Alba). The 2013 loss compares with an underlying loss of $62-million in 2012, when a $34-million charge was included in the results.

CEO Peter Wasow said on Thursday that the reduced underlying loss was driven by the Alcoa Worldwide Alumina and Chemicals joint venture's (AWACJV's) improved financial performance and Alumina’s general overhead and finance costs.

AWACJV reported earnings before interest, tax, deprecation and amortisation (Ebitda) of $268.9-million for the full year, down from the $335.5-million reported in 2013, with the unit reporting a net loss of $248.7-million, which included a $384-million legal settlement and $32-million in statutory maintenance charges. Excluding the Alba legal matter, Ebitda rose to $232-million.

The JV’s total revenue was $5.8-billion, with alumina production increasing in 2013 by 200 000 t, to 15.8-million tonnes. Alumina shipments also topped 16.1-million tonnes, which was 500 000 t higher than in 2012.

“The AWACJV delivered a sound operating performance due to strong cost control and ongoing net productivity gains and the strengthening US dollar, especially against the Australian dollar,” Wasow reported.

He noted that the move towards spot or index pricing for alumina helped to maintain the average realised price close to last year’s under difficult market conditions.

“During the year, the pricing transition continued with around 54% of third-party smelter grade alumina shipments priced on spot or an alumina indexed basis. AWACJV’s margins for alumina improved by $14/t thanks to higher shipments and a reduction in cash costs per tonne of alumina produced of 5.5%,” Wasow added.

In 2014, some 65% of AWACJV’s third-party alumina shipments would be sold on spot or index price basis, and Wasow was expecting further financial benefits from the stronger US dollar.