RUSAL announces 2018 results

(Posted on 11/03/19)

RUSAL, a leading global aluminium producer, announces its results for the year ended 31 December 2018.

• The aluminium market in 2018 was seriously affected by the Office of Foreign Assets Control (OFAC) sanctions as well as the trade wars and imposed import duties that resulted in significant growth of premiums and prices.
• During 2018, revenue increased by 3.1% and amounted to USD10,280 million as compared to USD9,969 million for the same period of 2017 following the growth in the London Metal Exchange (“LME”) aluminium price, which increased by 7.2% to USD2,110 per tonne as compared to USD1,968 per tonne between the comparable periods. This was partially offset by a 7.2% decrease in primary aluminium and alloys sales volume.RUSAL achieved net profit of USD1.698 billion (+39%, year-on-year (“YoY”)) in 2018,compared to USD1.222 bln in 2017. The recurring net profit in 2018 amounted to USD1.695 billion (+7.8%, YoY), compared to USD1.573 bln in 2017.

Commenting on the full year 2018 results, Evgenii Nikitin, CEO of Rusal, said, “Despite the OFAC Sanctions, RUSAL’s robust full year results demonstrated skillful crisis management alongside the ability to adapt to a new operations’ environment. It maintained its strong market position through its high managerial competence and operational flexibility. In 12M18, aluminium production totaled 3,753 thousand tonnes which is a  1.2% increase compared to the prior year. Total production dynamics remained largely stable with capacity utilization reaching 96%.

The 2018 results demonstrated RUSAL’s solid position in its core business: revenue increased by 3.1% to USD10,280 million, and the Company recorded a net profit of USD1.698 billion which is a 39% increase compared to the previous year. 

We have continued to actively promote our new brand of low carbon aluminium, “ALLOW” which has been received well, particularly from climate-conscious customers. It has fostered RUSAL’s aim of being a green and environmentally friendly Company.

In January 2018, the Company successfully placed its third Eurobond issue. More than 100 investors from Europe, America, Russia and Asia participated in the order book for RUSAL’s new Eurobond issuance, which exceeded USD 1.5 billion, and allowed the Company to fix the coupon rate at the level of 4.85% which is the lowest coupon of RUSAL Eurobonds issued to date. This transaction further improved the Company’s debt profile and its ability to pursue new business opportunities.

The key achievement of the year is that despite the OFAC Sanctions, the Company remained highly operational, avoided any seismic personnel cuts whilst maintaining well-established multi-industrial supply chains in the countries of operation; this signaled to customers and investors that our business model remains efficient, even in difficult times.

Looking ahead into 2019 and the forthcoming years, we expect aluminium demand to recover after the trade wars and supply shocks of late 2018. Alongside forecasting markets outside China to be in heavy deficit in 2019, we are confident that RUSAL is fully capable to leverage this trend.”

Latest News

Electric Arc Furnace boost for British Steel

British Steel has been granted planning permission to build an Electric Arc Furnace at its Scunthorpe... Read more

Leading event for grain handling and processing returns to Omaha

The National Grain and Feed Association (NGFA) in the USA, Grain Elevator and Processing Society (GEAPS... Read more

American Feed Industry commends vital supply chain legislation

The American Feed Industry Association (AFIA) has commended Representatives Ashley Hinson, R-Iowa-02... Read more

NGFA says NASS reports are critical to agribusiness operations

In a letter to U.S. Agriculture Secretary Tom Vilsack, the National Grain and Feed Association (NGFA... Read more

Bauxite and aluminium businesses deliver stable Rio Tinto results

Bauxite production of 13.4 million tonnes was 11% higher than the first quarter of 2023 for Rio Tinto... Read more

Rio Tinto spends more than A$16.1 billion with Australian suppliers

Rio Tinto increased its spend with suppliers and local businesses in Australia to more than A$16.1 billion... Read more

Cargill increases its renewable energy capacity by more than 40%

Cargill has reported increasing its contracted renewable energy capacity by 42% after signing five new... Read more

Agreement to set up KEZAD steel recycling and production facility

The UAE’s largest operator of integrated and purpose-built economic zones, Khalifa Economic Zones... Read more

Senate legislation includes phosphate and potash as critical minerals

The Fertilizer Institute (TFI) has praised the U.S. Senate for introducing bipartisan legislation to... Read more

Agribusiness expert’s legacy and optimism for GrainCorp’s future

Farmer, Company Director and long-standing member of the GrainCorp Board of Directors, Dan Mangelsdorf... Read more