Alumina’s full-year adjusted net profit has halved as weaker Chinese demand hurt prices of alumina but the Australian miner says it expects some recovery in 2020.
The prolonged trade war between the United States and China during 2019 crimped demand for aluminium and drove prices down, with the company on average earning about 25 per cent less per tonne of alumina sold compared with last year.
Excluding one-time items, net profit for the year came in at $US326.6 million ($A494 million), down from the $US689.9 million it earned a year earlier and 11 per cent below a Jefferies estimate of $US366 million.
However, the miner expects the situation to improve across 2020, given prices have already shown some stability since the start of the year.
“Aluminium demand is expected to grow in 2020 as trade friction subsides. This will contribute to a balanced alumina market and China is expected to absorb any surplus rest of world production,” chief executive Mike Ferraro said.
Alumina’s shares were up one cent, or 0.46 per cent, to $2.17 at 1135 AEDT amid a wider market downturn.
AAP
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