Chinese aluminium giant Chalco's net profit more than doubles in 2016

Accendra Health

23/03/2017 14:09

SINGAPORE, March 23 (Reuters) - Aluminum Corporation of 
China Ltd's (Chalco)  601600.SS   2600.HK   ACH.N  net profit 
more than doubled in 2016, marking a second straight year of 
profitability thanks to recovering non-ferrous metal prices and 
cuts in production costs. 
    The state-owned aluminium producer, one of the biggest in 
the world, made a net profit of 402.5 million yuan ($58.5 
million) in 2016, up from a revised 148.6 million yuan a year 
earlier, it said in a filing to the Shanghai stock exchange. 
    "The increase in profit was mainly due to power reforms and 
stronger operations, which helped lower production costs of 
alumina and electrolytic aluminium products by about 12 percent 
and 17 percent respectively," Chalco said on Thursday. 
    Alumina is the key raw material for producing aluminium. 
    In 2016, aluminium prices  CMAL3  rose by more than 10 
percent, with gains continuing so far this year due to global 
capacity cuts and infrastructure projects in China, the world's 
top producer and consumer of the metal. 
    Earlier this year, Yunnan Aluminium Co Ltd  000807.SZ  said 
it expected its 2016 net profit to rise about 315 percent, while 
 Shandong Nanshan Aluminium Co Ltd  600219.SS  forecast a rise 
of about 217 percent for the same period.  urn:newsml:reuters.com:*:nL4N1FE37D 
 urn:newsml:reuters.com:*:nL4N1FA3U7 
    As the overall market improves, Chalco said on Thursday it 
planned to invest up to 700 million yuan in a light alloy joint 
venture project with a total investment of 3.9 billion yuan in 
Guizhou province.  
    Chalco's announcement came after Hong Kong and China's 
markets closed on Thursday. Its Hong Kong shares ended 1.3 
percent higher while its Shanghai stock closed 1.04 percent up, 
outpacing the broader markets. 
    ($1 = 6.8845 Chinese yuan renminbi) 
 
 (Reporting by Lee Chyen Yee in Singapore and Meg Shen in Hong 
Kong; Editing by Mark Potter) 
 ((hongkong.newsroom@thomsonreuters.com;)(852)(2843-6441;)) 
 
Keywords: CHALCO CHINA/RESULTS