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Rusal operating results
(Posted on 10/02/21)
Rusal, a leading global aluminium producer, has announced operating results for the fourth quarter of 2020 (“4Q20”) and for the 12 months ending 31 December 2020 (“12M20”).
Aluminium production in 4Q20 totaled 950 thousand tonnes (+1.2% quarter-on-quarter (“QoQ”)), with Siberian smelters representing 93% of total aluminium output;
In 4Q20, aluminium sales amounted to 1,028 thousand tonnes (up 2.0% QoQ). During this period, sales of value added products (VAP) increased by 6.2% QoQ, to 483 thousand tonnes, demonstrating the continuing recovery of VAP share in total sales mix to 47% in 4Q20 from 37% in 2Q20, the lowest level during 2020, caused by external market drivers related to the COVID-19 pandemic;
In 4Q20 the Company continued to efficiently adjust its regional sales geography in line with changing market conditions. European destination grew in share to 42% (vs 37% in 3Q20) and Asia’s sales decreased to 27% (vs 32% in 3Q20);
In 4Q20, the average aluminium realized price increased by 10.1% QoQ to USD 1,940/t. The increase was driven both by the London Metal Exchange (“LME”) QP component (+10.1% QoQ to USD 1,781/t) and the average realized premium component (+10.4% QoQ to USD 159/t). The increase of realized premium during 4Q20 is attributed to the improved commodity component, as well as growth of the VAP share in product sales mix and a positive shift in VAP upcharge. Together these factors reflect the recovery of global market conditions;
In 12M20, aluminium production totaled 3,755 thousand tonnes, unchanged YoY;
In 12M20, aluminium sales decreased by 6.0% YoY, totaling 3,926 thousand tonnes. This reduction in sales is attributable mostly to a higher base in 12M19, when sales volumes were above normal levels due to the partial sell down of surplus inventories of primary aluminium that were accumulated over 2018 as a result of OFAC Sanctions. Sales of VAP increased by 11.3% to 1,722 thousand tonnes. The share of VAP sales in total sales was 44% (vs 37% in 12M19). This improvement of VAP sales during 12M20 was achieved amid market volatility and a decline in global demand for aluminium caused by the
In 12M20, the average aluminium realized price decreased by 6.0% YoY to USD 1,805/t. The LME QP component decreased by 7.1% YoY to USD 1,658/t. This was partially offset by the realized premium, which went up 8.3% to USD 147/t primarily due to a higher share of VAP in the total sales mix.
In 4Q20, total alumina production increased by 6.1% QoQ, to 2,142 thousand tonnes. The Company’s Russian operations accounted for 36% of total output;
In 12M20 alumina output totaled 8,182 thousand tonnes (+4.1% YoY). The Friguia bauxite and alumina complex increased output of alumina by 19.3% YoY as a result of the gradual ramp-up of production.
In 4Q20, bauxite production decreased by 7.6% QoQ, to 3,539 thousand tonnes. That was mainly due to a decrease in shipment volume at the Timan refinery in December, due to unfavorable weather conditions. Nepheline output decreased 7.7% QoQ to 1,121 thousand tonnes;
In 12M20, bauxite output totaled 14,838 thousand tonnes (-7.5% YoY). This decline in output is primarily attributed to the suspension of operations of business in Guyana, as announced at the beginning of February 2020. Nepheline output increased 8.4% YoY to 4,599 thousand tonnes.
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