October 26, 2017 / 12:50 PM / a year ago

Chalco's Jan-Sept net profit soars on higher aluminium prices

BEIJING, Oct 26 (Reuters) - Aluminum Corp of China Ltd said on Thursday that its nine-month net profit rose more than 10-fold year-on-year due to strong rises in metal prices.

Chalco, the listed arm of China’s biggest state-run aluminium firm Chinalco, said its net profit for the January-September period was 1.36 billion yuan ($205 million), from 124.27 million yuan a year earlier, on the back of rising aluminium prices.

Nine-month revenues were up 52.5 pct at 139.9 billion, the company said in a filing to the Shanghai stock exchange.

Chalco plans to bring in external investors to invest up to a total of 16 billion yuan in five of its subsidiaries, it said in a separate filing to the stock exchange.

Chinese aluminium futures have soared by some 20 percent so far this year on concerns that China’s environmental crackdown and restrictions on industrial output later this year will leave the market short of supply.

Chalco’s Hong Kong-traded shares are up more than 100 percent year-to-date as the company reaps the rewards of higher prices, while avoiding curbs on production that have affected its rivals.

Trading in Chalco’s Shanghai shares, however, has been suspended since Sept. 12 pending a major plan that may constitute asset restructuring.

In a disclosure to the Hong Kong stock exchange earlier this week, Chalco said the restructuring “involves issuance of shares for purchase of assets” and that the target assets “were preliminarily determined to be certain equity interests of the company’s subsidiaries.”

This would appear to rule out the possibility of a rumoured merger with another state-run enterprise.

Chalco said it requested that trading in its Shanghai shares remain suspended for a maximum of five months, from Sept. 12. ($1 = 6.6340 Chinese yuan renminbi) (Reporting by Tom Daly and Meg Shen; Editing by Lee Chyen Yee and Adrian Croft)

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