RUSAL full-year 2015 result: Total revenue declines while profit surges 126% YoY

UC RUSAL, a leading global aluminium producer, has announced its results for the year ended 31 December 2015. Total revenue decreased by USD677 million or by 7.2 per cent to USD8,680 million in 2015 compared to USD9,357 million in 2014. The decrease in total revenue was primarily due to the lower sales of primary aluminium and alloys, which accounted for 83.9 per cent and 83.6 per cent of UC RUSAL’s revenue for the years 2015 and 2014.

Revenue from sales of primary aluminium and alloys decreased by USD544 million, or by 7.0 per cent, to USD7,279 million in 2015, as compared to USD7,823 million in 2014, primarily due to 9.8 per cent decrease in the weighted-average realized aluminium price per tonne driven by a decrease in the LME aluminium price, as well as a decrease in premiums above the LME prices in the different geographical segments.

UC RUSAL recorded a profit of USD558 million in 2015, as compared to a loss of USD91 million in 2014.

Total cost of sales decreased by USD1,008 million, or by 14.0 per cent, to USD6,215 million in 2015, as compared to USD7,223 million in 2014. The decrease was primarily driven by the continuing depreciation of the Russian Ruble and the Ukrainian Hryvnia against the US Dollar by 58.7 per cent and 83.3 per cent, respectively, between the reporting periods.

As a result of the factors discussed above the company demonstrated a significant increase in the results from operating activities and Adjusted EBITDA for the year ended 31 December 2015 to USD1,409 million and USD2,015 million, respectively, as compared to the results from operating activities and Adjusted EBITDA of USD942 million and USD1,514 million, respectively, for the previous year.

The segment result margin for aluminium segment rose to 21.6 per cent for the year ended 31 December 2015 from 16.7 per cent for the year ended 31 December 2014.

During 2015 the company decreased its Net Debt and derivative financial liabilities by USD771 million that decreased the leverage ratio to below 3.0:1 as at 30 June 2015 resulting in the lower interest rate margin and cancellation of cash sweep mechanism starting from September 2015.

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