What: Alumina Limited (ASX: AWC) – a leading investor of bauxite and alumina assets – has today reported a loss of $US98.3 million for the year ended 31 December, 2014.
Here are seven key takeaways from today's report:
- Significant items (related to the loss on the sale of Jamalco refinery and closure of the Point Henry smelter) of $US189.4 million were announced, resulting in a net loss of $US98.3 million
- Net profit after tax, excluding significant items, was $US91.1 million, up from $US29.1 million in the prior corresponding period
- Gearing fell to just 3.4%, from 4.6% a year earlier
- Receipts from Alcoa World Alumina & Chemicals (AWAC) increased $US8.9 million to $US119.2 million
- Earnings per share fell from US0.02 cents to negative US3.5 cents
- A final dividend of US1.6 cents per share has been declared
- The company expects strong growth in metal demand to feed through to alumina demand
So what: Alumina is registered on both the ASX and Over-the-Counter (OTC) market in the US. Its strategy is to invest in bauxite, alumina and selected aluminium operations. It does this through its 40% ownership of AWAC, the world's largest alumina business.
Commenting on today's results CEO Peter Wasow said, "Our active and ongoing restructuring of the AWAC portfolio has positioned the business to maintain a leading, competitive position in global markets and to realise further the benefits of improving market fundamentals."
He added, "Excluding significant items, the profit of the underlying business improved considerably on the prior year with favourable exchange rate movements and lower production costs per tonne of alumina being the key contributing factors."
Now what: Mr Wasow said the industry outlook appeared favourable and the business was in good shape, evident by the group's declaration of a dividend: "With a strong balance sheet, reduced capital requirements going forward and an improved business outlook, we are pleased to resume paying dividends to shareholders".
