SYDNEY, Feb 1 - Australia's Alumina Ltd. , said on Thursday its 2006 net profit rose 62 percent, reflecting strong demand for aluminium and fixed-price sales of alumina, and sending its shares up over 3 percent.
The company boosted its final dividend and said it would also consider an off-market buyback in the first half of 2007 given the strength of operating cashflows.
Alumina owns 40 percent of the Alcoa World Alumina and Chemicals (AWAC) joint venture, while aluminium maker Alcoa Inc. AA.N owns the remaining 60 percent.
"AWAC is well positioned to increase alumina production in 2007 as the global demand for aluminium and alumina continues to grow strongly," Alumina Chief Executive John Marlay said in a statement.
The net profit of A$511.1 million ($396.2 million) compared with A$315.6 million a year ago, while the company said underlying net profit rose 72 percent to A$569 million, in line with its earlier forecast for a profit of A$565 million to A$585 million.
The increase reflected higher net margins on alumina and aluminium, and increased production and sales volumes, Alumina said.
AWAC sells most of its alumina under long-term contracts with links to the aluminium price and free from the spot alumina price, which weakened in 2006.
Alumina's stock lost 15 percent of its value in 2006 but has crept higher in January. Alumina shares were up 3.1 percent in early trade to A$6.66.
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