UC Rusal announces fourth quarter and full year 2014 operating results

UC RUSAL, a leading global aluminium producer, announces its operating results for the fourth quarter and full year 2014.

Key highlights

• Total aluminium production amounted to 3,601 thousand tonnes in FY14 (-7% YoY) and 915 thousand tonnes in 4Q14 (+1% QoQ).
• Share of value-added products continued to grow and reached a record 45% of total aluminium production in 2014 in comparison with 42% for the previous year.
• RUSAL alumina output totaled 7,253 thousand tonnes in FY14 (-1% YoY) and remained flat at the level of 1,818 thousand tonnes in 4Q14.
• RUSAL bauxite production amounted to 12,108 thousand tonnes in FY14 (+2% YoY) and 2,932 thousand tonnes in 4Q14 (-11% QoQ). The management remains focused on further increases of an efficient upstream vertical integration.
• The average aluminium realized price was USD2,219/tonne (+3% YoY) in FY14. The average realized price kept positive momentum in 4Q14 growing 5% QoQ.
• While RUSAL expects stable aluminium production volumes and favorable pricing environment in 2015, the Company does not plan to restart the aluminium smelters idled in 2013/2014 due to the current market environment so to maintain production discipline.

Commenting on the operating results, Vladislav Soloviev, CEO of RUSAL said:

“The period under review represented a marked turnaround in the aluminium market. Thanks to production cuts as well as a continued increase in demand, the 2014 ex-China market ended in deficit, supporting the LME price and also regional premiums.

Throughout 2014, RUSAL has maintained its disciplined approach to production and focus on highly marginal value added aluminium products which we intend to replicate in 2015. Looking forward, we estimate that an increased usage of aluminium across a wide range of sectors will mean that demand for the metal will grow by 6.5% in 2015, while the ex-China market deficit will remain significant.”

Aluminium production results

Aluminium capacity curtailment program, performed by the Company in 2013 through mothballing such smelters as NkAZ (1st line), BAZ, UAZ, VgAZ, VAZ, Alscon and partially NAZ, allowed the Company to decrease aluminium production volumes in 2014 as compared to 2013 by 256 thousand tonnes (-7% YoY).

Alumina production results

RUSAL demonstrated stable alumina production volumes in 2014. The modernization and organic growth projects on Company’s alumina refineries may bring FY15 alumina output to approximately 7.5 million tonnes.

Bauxite production results

Bauxite production growth in 2014 as compared to 2013 was driven by third party sales and replacement of third party volumes with supply from own deposits.

The decrease in volumes on QoQ basis in 4Q14 was caused by declining third party sales and seasonal factors.

Foil and packaging production results

The aggregate aluminium foil and packaging material production from the Company’s plants increased by 5% YoY to 94 thousand tonnes in FY14 and by 4% QoQ to 25 thousand tonnes in 4Q14, primarily due to increased production at Sayanal and Ural Foil sites in Russia and Armenal in Armenia.

Forward-looking statements

This press-release contains statements about future events, projections, forecasts and expectations that are forward-looking statements. Any statement in this press-release that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These risk and uncertainties include those discussed or identified in the prospectus for UC RUSAL. In addition, past performance of UC RUSAL cannot be relied on as a guide to future performance. UC RUSAL makes no representation on the accuracy and completeness of any of the forward-looking statements, and, except as may be required by applicable law, assumes no obligations to supplement, amend, update or revise any such statements or any opinion expressed to reflect actual results, changes in assumptions or in UC RUSAL’s expectations, or changes in factors affecting these statements. Accordingly, any reliance you place on such forward-looking statements will be at your sole risk.

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