Alumina Ltd. (AWC), partner in the world’s biggest producer of the material used to make aluminum, said first-half profit climbed 53 percent on higher demand and prices, allowing the company to boost its dividend.
Net income rose to $67.7 million, or 2.8 cents a share, in the six months ended June 30, from $44.2 million, or 1.8 cents a share, a year earlier, the Melbourne-based company said today in statement. It will pay a first-half dividend of 3 cents a share, from 2 cents a year earlier.
Global demand for aluminum may increase by 12 percent this year and double by the end of the decade as Asian countries build more office blocks and buy more aircraft, cars and trains, partner Alcoa Inc. (AA) said last month. Aluminum prices have climbed 10 percent in the past year, led by demand from China, the biggest consumer.
“Over the past decade, aluminum demand has outgrown all metals with the exception of steel,” Chief Executive Officer John Bevan said in the statement. “Much of this growth has been driven by Chinese industrialization, with China now established as a major consumer and producer of aluminum.”
Alumina fell 4.2 percent to A$1.82 at 10:01 a.m. local time in Sydney trading.
“These results evidence a strong performance in industry prices and demand, further improved by the increasing use of spot/index pricing for alumina contracts,” Alumina said. “Operational performance has been steady and margins have expanded, despite headwinds from the weak U.S. dollar.”
Alumina owns 40 percent of the Alcoa World Alumina & Chemical venture and Alcoa, the largest U.S. aluminum producer, the balance. The venture produces one quarter of the world’s alumina, which is refined into aluminum.
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