en.Wedoany.com Reported - Molly Beerman, Chief Financial Officer of Alcoa Corporation, stated that due to Cyclone Narelle, which struck Australia in March, the company's Pinjarra Alumina Refinery in Western Australia is expected to see a reduction of approximately 120,000 metric tons in second-quarter shipments compared to the first quarter.

Speaking at the Wells Fargo Industrials & Materials Conference in Chicago on Wednesday, Beerman noted that the March cyclone disrupted liquefied natural gas supplies to the Pinjarra facility. The refinery, with an annual capacity of 4.7 million metric tons, incurred an additional $30 million in production costs in the second quarter as a result of this incident.

Due to the conflict in the Middle East, Alcoa's alumina refinery in São Luís, Brazil, is expected to incur an additional $15 million in fuel costs this quarter. The São Luís plant remains profitable, but the company's overall alumina operations face significant pressure. The refinery in Western Australia is grappling with challenges from low alumina prices and poor bauxite quality. Beerman indicated that the segment as a whole will be under strain.

Beerman also revealed that, impacted by the war, some aluminum smelting customers in the Middle East have faced production constraints. Alcoa is assisting these customers in redirecting certain contracted alumina shipments, primarily to the Chinese market.

Alcoa's shares fell 9.5% on Wednesday, closing at $65.55.

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