Shannon refinery plunges into the red

The largest alumina refinery in Europe, Rusal Aughinish on the Shannon estuary, last year plunged into the red to record pre-tax losses of $10.4m (€7.68m).

According to a report filed to the Companies Office, the business recorded the loss as revenues dipped 2.5%, from $610.57m to $586m, in the 12 months to the end of December last.

The company focuses on the production and sale of alumina, which is extracted from bauxite. Separate figures provided by Aughinish Alumina to the Environmental Protection Agency confirm that its output last year was 1.924m tonnes of alumina hydrate — a 0.1% increase on 2011 levels.

The firm said around 70% of the bauxite processed at the refinery comes from Guinea in Africa, with the remainder from Brazil. The finished product, alumina, is exported for further processing through smelting to aluminium metal.

The pre-tax loss last year follows a $4.9m pre-tax profit in 2011 — a negative swing of $15.3m.

The loss came ahead of a board shake-up at Limerick Alumina Refinery, with three directors resigning and another four appointed this year.

Remuneration to directors last year decreased from $1.7m to $670,000.

The pre-tax loss includes a non-cash depreciation cost of $27.9m. The firm also recorded an actuarial loss of $12.49m on its defined pension scheme.

At the end of December, the company had accumulated profits of $207.1m — the Aughinish Alumina refinery has been valued at $1.2bn by its Russian parent, United Company Rusal. Last year, the Rusal group recorded worldwide revenues of $10.8bn.

The numbers employed at Aughinish last year remained static at 450, with staff costs decreasing from $50.2m to $45.5m.

The directors said the main risks and uncertainties it faces relate to controlling operating costs, decreasing demand for alumina, and economic conditions generally. They added that the group has mitigated its energy costs through the use of its combined heat and power plant.