AMAG Austria Metall AG, the biggest company in the Austrian Aluminium industry sector pursued to benefit from the positive market environment after an enterprising start to the first quarter of 2021.
The Meta Division is flying remarkably high especially due to attractive aluminium prices and premiums. The demand for aluminium rolled products and recycled cast alloys developed positively, as expected, demand from the aircraft industry remained dull in the reporting period.
Gerald Mayer, CEO of AMAG Austria Metall AG, said: “We were well equipped for the rapid market recovery, which enabled us to take advantage of the positive economic environment. Due to the attractive price situation in the Metal Division and a gratifying trend in shipments at the Ranshofen site, we not only exceeded the pre-crisis level but even achieved the best half-year result in AMAG’s history.”
AMAG’s revenue reflected a positive trend in the aluminium price as well as in shipment volumes. The 3-month aluminium price averaged $2,256 tonnes in the period under review, up from $1,622 tonnes in the first half of 2020. Shipment volumes reported sustainable growth from 203,200 to 226,100 tonnes. Comprehensively, the AMAG Group achieved a rise in revenue from €463.8 million in H1 2020 to €595.1 million in the H1 2021 (+28.3%).
Earnings before interest, tax, depreciation and amortization (EBITDA) reported significant growth from €59.3 million in the first six months of the previous year to the current figure of €93.6 million. Furthermore to a stable production in all AMAG divisions, attractive aluminium prices and low raw material costs in the primary aluminium segment were crucial factors in this context. The good performance in terms of new order intake of aluminium rolled products and recycled cast alloys also had a positive impact. In H1 2021, significant Y-o-Y earnings improvements were achieved in all operating divisions of the AMAG Group.
Taking into account depreciation and amortisation of €41.7 million (H1/2020: €41.7 million), the operating result (EBIT) of €51.9 million was also recorded significantly higher than in the previous year (H1/2020: €17.6 million).
Net income after taxes of €35.0 million reflects a successful H1 2021 for the AMAG Group (H1 2020: €12.4 million).
The aluminium company’s cash flow from operating activities remained strong in the current half-year at €50.2 million (H1/2020: €70.6 million). The high level of earnings had a positive effect. Particularly a significantly higher aluminium price incurred a counter effect. With cash flow from investing activities currently at €25.8 million, compared with €24.8 million in H1 2020, the AMAG Group is reporting a free cash flow of €24.4 million (H1 2020: €45.8 million).
The net financial debt remained at a stable level and stood at €303.3 million as of 30th June 2021 compared with €314.3 million as of the end of the 2020 financial year.
The comprehensive positive market environment provides grounds for optimism. The price situation in the primary metal sector is attractive and the order book position at the Ranshofen site is gladdening. The current forecasts from Commodity Research Unit (CRU) point to a positive outlook for aluminium demand across all sectors. Both, primary aluminium and aluminium rolled products are expected to expand by around 9 % in 2021.
Gerald Mayer said: “In view of the current situation we are looking to the second half of the year with optimism. Thanks to the stable smelter operations in Canada, we are benefiting from the positive market environment in the primary aluminium sector. The order book position at the Ranshofen site has reached an all-time high in the last few weeks and leads us to expect a high level of shipments over the coming months. In order to ensure continued growth, we are currently seeking to hire around 50 employees.”
The AMAG Management Board expects an EBITDA of between €155 million and €175 million for the full 2021 financial year, compared with €108.2 million in the previous year and €143.0 million in the 2019 financial year.
source https://www.alcircle.com/news/amag-austria-metall-ag-reports-remarkable-earnings-in-h1-2021-68962
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