MELBOURNE, Feb 9 - Australia's Alumina Ltd <AWC.AX> reported a net loss for 2009 and missed market expectations as it was hit by a slump in aluminium demand but reinstated its dividend on Tuesday as its outlook had improved.
Alumina was forced to scrap its dividend a year ago to conserve cash as the industry suffered a severe downturn, but with the recovery underway it said it would pay out 2 cents a share for 2009 and expected better dividends this year.
The firm said production of alumina, the material used to produce aluminium, had increased to record levels late last year to meet growing demand, especially from China.
"The outlook for improved returns for shareholders has strengthened," Chief Executive John Bevan said in a statement.
Alumina reported a net loss of A$26 million versus a net profit of A$168 million a year earlier.
Its underlying loss before one-offs was A$2.2 million, compared with a profit before one-offs of A$241.1 million in 2008, well short of analysts' forecasts for underlying earnings of A$47.4 million on Thomson Reuters I/B/E/S.
The firm said it was hammered by a 35 percent drop in average LME aluminium prices <MAL3> to $1,704 a tonne for the year. Prices have since recovered to trade at $2,013 but remain below average prices in 2008.
Alumina is a 40 percent partner in the Alcoa World Alumina and Chemicals joint venture with Alcoa <AA.N>, which owns 60 percent.
It said it expected AWAC alumina production to increase by around 2 million tonnes this year with average production costs to hold at 2009 levels.
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