Alucam returned to profit in 2025, but the improvement was driven largely by exceptional accounting gains rather than a full operational recovery.
The Cameroonian aluminum producer's 2025 financial statements show a CFA16 billion compensation payment linked to what the company describes as an "ENEO incident." Recorded under other income, the payment helped reduce outstanding liabilities to the electricity utility while significantly improving Alucam's annual results.
According to the notes accompanying the financial statements, the sharp increase in other income during 2025 stemmed from three main factors: the CFA16 billion ENEO compensation, the reversal of CFA2 billion in accrued invoices, and the partial release of a CFA4 billion provision related to the TEC. Together, these items provided substantial support to the company's earnings.
The impact of the compensation is also visible in supplier liabilities. Trade payables to non-group suppliers fell from CFA36.8 billion in 2024 to CFA18.1 billion in 2025, a decline of about CFA18.7 billion.
According to Note 17 of the financial statements, most of that reduction resulted from the offsetting of Alucam's outstanding balance with ENEO against the CFA16 billion compensation payment.
The transaction even pushed the ENEO account into a net receivable position of about CFA3 billion as of December 31, 2025. In other words, after the accounting adjustment, the balance no longer reflected a liability owed to the utility but rather an amount favorable to Alucam. This also helps explain why the "other receivables" category increased from CFA1.2 billion in 2024 to CFA4 billion in 2025.
Improved Results, Persistent Weaknesses
The compensation payment should not be viewed as evidence of a structural improvement in cash flow. It primarily reflects an accounting adjustment tied to compensation and debt offsetting arrangements.
The financial statements do not specify the exact nature of the ENEO incident that led to the payment, and the documents reviewed provide no definitive link between the compensation and any specific industrial event.
At the same time, the accounts reveal another significant transaction involving ENEO. Note 19 states that the Cameroonian government assumed responsibility for settling a validated debt of CFA20.9 billion owed by Alucam to the utility. The liability relates to high-voltage electricity consumption between October 2023 and December 31, 2024.
That arrangement is separate from the CFA16 billion compensation payment. The effect on profitability was substantial. Alucam reported net income of CFA279.3 million in 2025, compared with a net loss of CFA23.8 billion in 2024. Operating profit reached nearly CFA2 billion after a CFA21.9 billion deficit the previous year.
The broader financial picture, however, remains fragile. Revenue fell from CFA94.4 billion in 2024 to CFA80 billion in 2025, a decline of about 15%. The company's equity position also remained deeply negative at CFA51.9 billion at the end of 2025, compared with negative CFA52.2 billion a year earlier.
The notes to the accounts further indicate that both working capital and net cash position remain negative. To restore its balance sheet, Alucam is considering a recapitalization through the conversion of government claims into equity. According to the company's auditors, steps are underway to complete the operation in 2026, based on government claims recorded on the balance sheet totaling CFA92.5 billion.
The compensation payment may be linked to the industrial incident that occurred at Alucam's Edéa facility in April 2020. At the time, a power outage triggered a fire in the plant's electrical room, damaging several electrolysis cells and affecting production capacity.
However, the financial statements contain no explicit reference confirming a connection between that event and the compensation recognized in 2025.
Since the incident, Alucam has operated below capacity. The unavailability of part of its industrial equipment has limited production, which continues to struggle to exceed half of the plant's nominal capacity of 100,000 tons per year.
As a result, Alucam's return to profit in 2025 reflects less a completed industrial turnaround than a temporary accounting improvement supported by exceptional income and debt restructuring measures. While the company has strengthened its financial statements, it still faces a weakened balance sheet and the challenge of rebuilding its capital base on a sustainable footing.
Amina Malloum