The 2023 semi-annual reports of the world's major aluminum companies Alcoa, Hydro, Rusal, Rio Tinto, and Alumina Alumina!

Alumina Limited

The company experienced significant losses in its performance during the first half of the year. According to the Australian Aluminum Company, the company reported a net loss of $38.7 million USD after taxes for the first half of 2023 (excluding significant projects), while it had a net profit of $120 million USD during the same period in 2022. The company's operating cash flow for the first half of 2023 was $15.5 million USD, compared to $45.9 million USD for the same period last year, representing a decrease of 66.23%. In the first half of 2023, the company's EBITDA stood at $102 million USD, whereas it was $836 million USD during the same period in the previous year, marking an 87.80% decrease. However, it's worth noting that in the first half of 2023, the company received increased support from banks, with an additional $500 million USD in credit lines, which expanded the company's liquidity.

Hydro

The company's profits experienced a significant decline in the first half of the year. In the first half of 2023, Heidu Corporation reported a total revenue of $102.164 billion USD, representing an 8.30% decrease compared to the same period last year. The net profit was $6.201 billion USD, which is a 64.66% decrease from $17.5 billion USD in the previous year's same period. The EBITDA for the first half of 2023 stood at $14.623 billion USD, reflecting a 35.75% decrease compared to the previous year.

Heidu attributed the decline in performance primarily to the international market's decrease in metal prices, combined with the impact of the currency policies of the countries where some of Heidu's facilities are located and an increase in carbon dioxide emission costs. Although there was a noticeable decrease in some raw material costs, this reduction was offset by the increase in electricity costs.

Rio Tinto

In the first half of 2023, Rio Tinto's alumina production amounted to 3.97 million tons, which represents a 1.20% decrease compared to the same period in 2022. According to Rio Tinto's explanation, this decrease in production was partially due to unplanned shutdowns at Queensland Alumina Limited (QAL), a subsidiary of Rio Tinto. However, the improved operational stability at Rio Tinto's Yarwun and Vaudreuil alumina refineries contributed to a reduction in the overall production decline.

Rio Tinto anticipates that the total alumina production for the full year of 2023 will decrease to a range of 7.4 million to 7.7 million tons, as opposed to the previous estimate of 7.7 million to 8 million tons.

Rusal

External challenges have increased, severely impacting the company's performance. In recent years, Rusal has been significantly affected by external factors, especially since the beginning of the Russia-Ukraine conflict, when the United States imposed a 200% tariff on aluminum and aluminum products imported from the Russian Federation.

The High Anti-Corruption Court of Ukraine ruled to confiscate the Nikolaev Alumina Refinery from Rusal, and the European Union also implemented a series of sanctions against the company. These developments have made Rusal's operations increasingly difficult. According to the latest semi-annual report for 2023, Rusal's operating income was $5.945 billion, a year-on-year decrease of 16.89%, with a net profit of $5.27 billion, representing a 73.7% year-on-year decline. The EBITDA value for the first half of the year was $290 million, compared to $1.807 billion in the first half of 2022, marking an 83.95% decrease.

Alcoa

Revenue has declined, and profits are decreasing. Alcoa reported a 22.82% year-on-year decrease in operating income for the first half of 2023, dropping from $6.937 billion in the same period in 2022 to $5.354 billion. According to Alcoa, the primary reasons for this decline in performance are rising product costs and falling market prices. In addition to these factors, Alcoa permanently closed its Intalco aluminum smelter in Washington during the first quarter, incurring expenses such as employee severance totaling $149 million. Alcoa anticipates improved financial conditions by the third quarter of 2023 as both the alumina and aluminum segments are expected to reduce raw material and production costs.