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BRIEF-Alcoa reaches early termination agreement for power contract tied to curtailed rockdale smelter in Texas
October 13, 2017 / 1:23 PM / in 10 days

BRIEF-Alcoa reaches early termination agreement for power contract tied to curtailed rockdale smelter in Texas

Oct 13 (Reuters) - Alcoa Corp:

* Alcoa Corporation reaches early termination agreement for power contract tied to curtailed rockdale smelter in Texas

* Alcoa Corp - ‍termination of contract, which had been set to expire no later than 2038, was effective as of october 1, 2017​

* Alcoa - ‍in accordance with early termination agreement, alcoa made a lump sum payment of $237.5 million on october 10​

* Alcoa - expects annual improvement to net income & adjusted ebitda of $60 million to $70 million as a result of contract termination, beginning in q4 of 2017​

* Alcoa - ‍Alcoa and Luminant terminated other related fuel and lease agreements effective as of same october 1 date​

* Alcoa - initiated a strategic review of remaining buildings and equipment associated with smelter, casthouse and aluminum powder plant​

* Alcoa - will record a charge of approximately $250 million (pre- and after-tax) in q4 of 2017 associated with transfer of assets to luminant​

* Alcoa Corp - ‍in accordance with early termination agreement, alcoa also transferred about 2,200 acres of related land and other assets to luminant​

* Alcoa says “‍while company sold surplus electricity since smelter’s curtailment, alcoa’s cost of power under contract exceeded related revenue​” Source text for Eikon: Further company coverage:

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