Russians collect 34m-euro dividends from Alro

The Vimetco group, held by Russian businessman Vitali Machitski, will collect 141 million lei (34 million euros at an exchange rate of 4.1 lei/euro) in dividends from aluminium smelter Alro Slatina (ALR), which it controls, with the plant benefiting from cheap energy from Hidroelectrica.

Alro last year posted a 160 million-lei (38 million-euro) net profit, double as much as in 2009, with the company management proposing that the entire profit be distributed to shareholders, according to the notice to attend the GM published on the Stock Exchange. The bulk of the dividends will go to the Russians, who control 88% of Alro, while Fondul Proprietatea (Property Fund – FP), which holds 10%, will collect 3.4 million euros.

The rise in the plant’s profit came amid a 28% turnover increase, to 1,8 billion lei (425 million euros), as a result of the increase in the price of aluminium on international markets.

In addition, Alro benefits from a long-term contract sealed with Hidroelectrica, producer of the cheapest energy in Romania, which provides it with the entire amount of energy it needs. Under the contract, Alro has paid a price lower than the price paid on the OPCOM market in the past few years, the only free energy market in Romania. Alro’s energy spending accounts for around 30% of its overall costs.