Alumina Ltd., partner in the world’s biggest producer of the material used to make aluminum, reported full-year profit more than tripled after prices rose and output climbed to a record.
Net income was $127 million, or 5.2 cents a share, for the year ended Dec. 31, compared with $35 million, or 1.4 cents, a year earlier, the Melbourne-based company said today in a statement. That compares with the $134.6 million average of nine analyst estimates compiled by Bloomberg.
Alumina is “cautious” on the outlook for 2012 with prices likely to remain volatile, the company said. The world’s major aluminum producers including United Co. Rusal and Alcoa Inc. are cutting output after prices slumped in the second half.
Alumina shares rose 1.3 percent to A$1.17 in Sydney trading today, the most in 10 days. The stock has fallen 54 percent in the past year, compared with a 15 percent decline in the benchmark index.
Alumina owns 40 percent of the Alcoa World Alumina & Chemical venture and Alcoa Inc., the largest U.S. aluminum producer, the balance. The venture produces one-quarter of the world’s alumina, which is refined into aluminum.
The company plans to produce 15.9 million tons of alumina this year after a record production of 15.7 million tons in 2011. The 2012 target will be adjusted to meet demand, Chief Executive John Bevan said on an earnings call today.