UC Rusal’s third quarter results
(Posted on 09/11/18)
UC Rusal, a leading global aluminium producer, has announced its results for the three and nine months ended 30 September 2018.
Key highlights include:
- Adverse effect of the OFAC sanctions resulted in extraordinary low sales volume reported by the Company in the second quarter of 2018. Compared to this low base level there was a one-off recovery of sales volume through the third quarter of 2018.
- Thus, the Company reported 33.6% growth in volumes of primary aluminium and alloys sold in the third quarter of 2018 upon the extension of Company’s general licenses, after a significant reduction in the second quarter of 2018. Revenue in the third quarter of 2018 increased by 18.6% to USD2,918 million as compared to USD2,460 million in the third quarter of 2017. The result was an improvement of financial and operating indicators in the third quarter of 2018.
- Sales of primary aluminium and alloys for the nine months of 2018 decreased by 5.4% to 2,794 thousand tonnes, as compared to 2,955 thousand tonnes sold through nine months of 2017, while sales of alumina dropped by 4.5% to 1,457 thousand tonnes for the nine months 2018, as compared to 1,526 thousand tonnes sold through nine months of 2017. Revenue for the nine months of 2018 increased by 9.6% to USD7,915 million as compared to USD7,224 million for the nine months of 2017 which reflects higher average aluminium sales price, premiums and alumina prices.
- The third quarter of 2018 was characterized by the rising aluminum market deficit outside of China, as well as the decline in available aluminum stocks to lowest levels in 10 years. The situation has caused upside price volatility at the highest levels.
- As a result of the above and due to the depreciation of Russian Rouble against US dollar in the third quarter of 2018, the Company profit for the third quarter of 2018 increased by 46.3% to USD597 million, as compared to USD408 million in the second quarter of the year. However the adjusted net profit (the net profit adjusted for the net effect of the Company’s investment in Norilsk Nickel, the net effect of derivative financial instruments and the net effect of non-current assets impairment) for the nine months of 2018 increased by 20.1% to USD873 million as compared to USD727 million for the nine months of 2017.
- Production cost per tonne in aluminium segment amounted to USD 1,658 and increased by 12.3% in the nine months of 2018 as compared to the same period of 2017 as a result of significant increase in electricity, key raw materials prices and railway transportation tariffs.
- Whilst the Company continuously monitors the impact of the OFAC Sanctions on the Group, the Company's current assessment remains the same, that it is highly likely that the impact may be materially adverse to the business of the Group. The Company's primary focus remains on the maintenance of its operations and the protection of the interests of all of its creditors, investors and shareholders.
If you talk to women in trading and risk management roles across Cargill, you will hear a range of ideas... Read more
Archer Daniels Midland Company and Cargill have successfully completed their transaction, formally launching... Read more
BHP has announced a US$6m equity investment in Carbon Engineering Ltd (CE), a Canadian-based company... Read more
RUSAL, a leading global aluminium producer, announces its results for the year ended 31 December 2018... Read more
EUBALTICA, the advisory and consultancy company for Morska Agencja Gdynia (MAG) in Poland has supplied... Read more
Bühler Insect Technology Solutions, a pioneering provider of integrated solutions for insect rearing... Read more
Rio Tinto has discovered copper-gold mineralisation at the Winu project in the Yeneena Basin of the... Read more
The NGFA joined 59 other farm and agribusiness groups in signing a letter urging the US Congress... Read more
While Greek livestock and feed markets are developing slowly, specific segments, notably poultry and... Read more
The Mineral Products Association has welcomed the publication of the latest UK Extractive Industries... Read more