RUSAL reduced its net profit in the second quarter by 31%

ECONOMY

MOSCOW, August 6. /Basereporter.com/. “RUSAL” in the second quarter reduced adjusted net income compared to the first 31% to $218 million. This follows from published on Monday the report of the company.

Compared to the same period last year the figure rose to 8%. For the half year net adjusted profit increased by 15% to $535 million

Revenue for the quarter decreased 18% to $2.25 billion, year-on-year figure fell by 8.7%. For the half year revenue grew 4.9% to $4.99 billion

The Board of Directors of the company recommended not to pay dividends for the first half.

Net debt at 30 June amounted to $7,875 billion, 3% more than at the beginning of the year.

Production results

Production of primary aluminum for the second quarter rose 0.8% to 939 thousand tonnes. Compared to the same period last year by 2%. Over half the aluminium production increased by 2% to 1.87 million tonnes.

The aggregate aluminium sales volumes for the quarter fell nearly 19% to 783 thousand tons. Year-on-year the figure decreased by 22% to 1,002 million tons.

Work in crisis mode

The entire second quarter, the company worked in conditions of sanctions, which the U.S. Treasury imposed against “Rusala” and its main co-owner Oleg Deripaska 6 April this year. “We work in crisis mode. The uncertainty of the US sanctions remain the main risk to the “RUSAL”, – said the representative of the company the results of the reporting period.

A positive result of the first half it largely explained by the strong results of the first quarter, and increases in aluminum prices on the London metal exchange.

However, sanctions have severely restricted exports, explained in the company.

“You have any difficulty with transportation of products, financing, movement of funds. It took time for the U.S. Treasury provided an explanation of the conditions of the General licenses issued by company, before RUSAL was able to resume performance of its obligations”, – said his spokesman.

“RUSAL” has strengthened control over costs. So, by 13.6% over the previous quarter was the reduced costs for raw materials, 13.7% of energy costs. The plans to “expand the product range and modernization of production facilities” is retained, the company said.

RUSAL is now actively seeking new customers and markets, but “the key priority remains the development of demand in the domestic market,” said the company. Thus, the share of Russia and CIS countries in the structure of revenues for the first half rose 24% to 29% year-on-year.

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