Comalco profit falls

Press, 26 August 1978, Page 17

Comalco profit falls

NZPA Sydneyi Comalco, Ltd, has trimmed ' its interim dividend from' 5c to 4.5 c a share. A total unchanged payment of 10c a share, involving a 5.5 final dividend on capital 1 increased by the recent one-for-four cash issue, would need a full-year profit of more than S37M to oe ' covered about twice, which is the company’s policy. Comalco reported yesterday that its June half-year net profit, before extraordinary, items had dipped 8.6 per cent to $18.4M, despite an 18.7 per cent rise to $222. IM' in gross revenue. The half-year profit, after extraordinary items, declined 10.8 per cent to $16.3M after , tax of 10.4 M (up $849,000), depreciation of 9.2 M (up SI.7M) and interest expenses of $9.6M (up $457,000).

The extraordinary items included a provision of $2. IM (up 209,000) for net exchange > losses on long-term loans. The main factors in the profit fall were a 13.8 per cent decline to 4.2 M tonnes < in Weipa bauxite shipments, and a switch from $3.1 M profit to a $40,000 loss in the equity of results of associated companies. In a corporate reshuffle, which became effective on March 1, Comalco sold its 50 per cent interest in Dampier! Salt to C.R.A., and increased its equitv in Queensland Alumina, Ltd, from 13.8 per cent to 30.3 per cent. Comlaco’s other major! interests are the 50-per 'cent i owned Bluff aluminium smel-! ter, and the 20-per cent! owned Eurallumina bauxite! refinery in Sardinia. i

Despite an increase in Manapouri power charges, effective from January 1, which adds about S7M a'year to Comalco’s share of the Bluff smelter’s costs, Comalco reported that over-all smelting profits improved over those of the corresponding 1977 period. Comalco’s share of aluminium ingot output by the Bell Bay, and Bluff smelters in- ! creased 13.2 per cent to 91,954 tonnes. I The company also said ! both the Q.A.L., and Eural- ! lumina bauxite refineries! I operated at close to rated ! capacity during the half year.' However, sales were iaffected by the unusually! I high bauxite stocks held by i most of its bauxite customers, and this situation I would continue throughout I the rest of 1978.