Henan Shenhuo Group’s Profits Down Over 80% YoY in 2012 on Plunging Aluminum Prices

SHANGHAI, Mar. 31 (SMM) – According to Henan Shenhuo Group (Shenhuo Group)’s annual report, the company reported RMB 27.99 billion in operating revenues during 2012, down 8.84% YoY, RMB 202 million in profits attributable to shareholders of its listed company, also down 82.48%YoY. Its earnings per share declined 82.43% YoY to RMB 0.114 and return on equity also dropped 20.25 percentage points YoY to 3.22%.

 

 

The company attributes its falling profits to plunging coal and aluminum prices in 2012.

 

 

Shenhuo Group sold 451,300 mt of aluminum in 2012, down 6.33%, 820,900 mt of alumina, up 38.62%, 181,600 mt of anode carbon, up 13.15%, and 65,600 mt of casting and cold-rolling rolls, down 35.56%. 

 

 

Henan Nonferrous Huiyuan Aluminum and Henan Shenhuo New Materials, its subsidiaries, were running at full capacity during the report period, contributing to a notable increase in its alumina and aluminum hydroxide output. The falling sales volumes of its casting and cold-rolling rolls were explained by decreasing orders at its subsidiaries – Yangguang Aluminum Semis and Henan Shenhuo International Trade.  

 

 

600MW generating units at its subsidiary Henan Shenhuo Power Generation, which are able to run at full capacity for 168 hours, have entered full operations. This will help reduce Shenhuo Group’s aluminum production costs and increase its profits in 2013.

 

 

The company has set itself a target of producing 9 million mt of coal for commercial use this year, 630,000 mt of aluminum, 80,000 mt of aluminum semis, 800,000 mt of alumina, 100,000 mt of aluminum hydroxide and generating 5.8 billion kwh of electricity. It expects to book RMB 27 billion in operating revenues on RMB 26.3 billion in costs.