Aughinish Alumina firm makes profits of $119.36m as revenues surge by 50%
Gordon Deegan
Higher alumina prices resulted in the Russian-owned company that operates the largest alumina refinery in Europe, located on the shores of the Shannon estuary, returning to profit in 2024 to record pre-tax profits of $119.36m (€103.4 million)
New accounts filed by Limerick Alumina Refining Ltd (LARL) show that the firm returned to profit after revenues surged by 50 per cent or $292.25 million from $583.1 million to $875.36 million in 2024.
A recent Irish Times investigation found the company supplies vast amounts of raw materials to Russian aluminium smelters that then goes to a Moscow-based trading company, which in turn supplies Russia’s military industry.
The directors state that the Limerick-based Aughinish Alumina business recorded profits “primarily due to higher alumina market prices”.
The pre-tax profit of $119.36 million in 2024 followed pre-tax losses of $113.64 million in 2023 - a positive swing of $233 million.
The firm recorded operating profits of $188.26 million after taking into account exceptional costs of $27.37 million, which mainly concern the impairment of tangible assets of $25.8 million.
Underlining the contribution Aughinish Alumina makes to the Midwest economy, staff costs in 2024 increased from $52.42 million to $55.4m. Aggregate pay to directors increased from $706,000 to $766,000.
In accounts signed off on Tuesday of this week, March 31st, the directors state that due to its trading structure, the company is reliant on the financial support from its parent company, UC Rusal.
The directors state that while the 2024 financial statements for UC Rusal recorded a profit and net current assets, its 2025 financial statements recorded a loss and net current liabilities.
The directors state that the company and its parent company, UC Rusal have not been designated under the published UK, EU or US sanctions issued to date.
They state, however, that the business of Rusal, and by extension LARL and its wholly owned subsidiary Aughinish Alumina Limited, is negatively impacted by sanctions on other entities/sectors and/or decisions by entities/sectors to not deal with Russia and Russian-owned businesses.
The directors state that in spite of the company not being designated, the Company is continuously being impacted by the effects of self-sanctioning by commercial counterparties and intermediaries.
They state that this includes delays in the processing of transactions by banks, and it remains a principal concern that the Company and/or its parent company may be designated under a future sanctions package from the US, EU or UK.
Auditors EY on the firm’s going concern status point to parent firm, UC Rusal’s own audit report containing a material uncertainty in relation to going concern.
EY state that these events and conditions, together with the matters described in the LARL financial statements indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern.
At the end of December last, accumulated losses at the company totalled $240.17 million.
Cash funds reduced sharply from $85.13 million to $17.67 million.
In a post-balance sheet event, the directors state that in a change from the previous contractual/trading arrangements LARL has entered into direct alumina/alumina trihydrate sales contracts with a number of third-party purchasers in 2025.
Specifically, in May 2025, in relation to one of the third-party sales contracts which LARL entered into, the sales contract provides for the supply of alumina in respect of which a prepayment of $100 million was received.
They state that this supply contract was extended further in December 2025 by an additional $50 million under the same terms.
