By Tom Daly
By Tom Daly
March 23 (Reuters) – Chinese language aluminium maker Chalco posted its lowest annual revenue in 4 years in 2020 as greater than $200 million in impairment fees principally attributable to pandemic-hit clients struggling to pay for merchandise outweighed an enormous rally in steel costs.
The state-run firm, formally often called Aluminum Corp of China Ltd 601600.SS, 2600.HK, stated in a submitting web earnings fell 13.1% year-on-year to 741 million yuan ($114 million) in 2020. That’s its worst annual end result since a 368 million yuan revenue in 2016, Refinitiv Eikon knowledge present.
Revenues had been down 2.2% at 186 billion yuan whilst Shanghai aluminium costs SAFcv1 rose greater than 20% final yr amid a robust rebound in demand in China, the world’s greatest aluminium market, after an preliminary coronavirus-led collapse.
Costs climbed additional to a close to decade excessive earlier this month however slumped as a lot as 6% on Tuesday on issues China might launch aluminium from state reserves.
Chalco attributed the income drop to a lower in commerce.
Internet impairments totalled 1.41 billion yuan ($216.5 million), together with 979 million yuan for buyer unhealthy debt and 433 million yuan for long-term belongings after Chalco shut 135,000 tonnes of annual smelting capability in Shandong.
“Because of the influence of the COVID-19 pandemic and modifications within the exterior setting in 2020, some clients … have encountered difficulties of their manufacturing and operation,” it stated, placing the general influence of impairments on web revenue at 1.23 billion yuan.
Chalco’s main aluminium manufacturing fell for a second straight yr, by 2.6% to three.69 million tonnes in 2020.
That’s beneath private-sector China Hongqiao Group 1378.HK and Russia’s Rusal 0486.HK, which churned out 5.62 million tonnes and three.76 million tonnes, respectively.
Nonetheless, it offers Chalco mum or dad Chinalco, which additionally controls regional producer Yunnan Aluminium 000807.SZ, a world-leading group whole of 6.1 million tonnes.
Chalco’s manufacturing of aluminium-making uncooked materials alumina in the meantime rose 5.3% year-on-year to 14.53 million tonnes.
($1 = 6.5130 Chinese language yuan renminbi)
(Reporting by Tom Daly)
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