Rusal reports robust earnings growth in Q3 and 9 months ended Sept 30, 2016

Leading global aluminium producer UC Rusal announced today its production and financial results for the three month and nine months ended September 30, 2016. The company posted adjusted net profit and recurring net profit of USD 181 million and USD 327 million, respectively, for the third quarter of 2016 as compared to USD 40 million and USD 276 million for the past quarter of the year.

Despite appreciation of Russian Ruble from average RUR65.9/1 US dollar in the second quarter of 2016 to RUR64.6/1 US dollar in the third quarter of the year Rusal managed to decrease aluminium segment cost per tonne to USD 1,330 from USD 1,334 per tonne in the same period of 2015 as a result of continuing focus on efficiency and cost reduction initiatives and external factors such as decrease of raw materials price.

Revenue for the three months ended September 30, 2016, totalled at USD 2,060 million vis-a-vis USD 2,073 million in the same period of 2015. Revenue for the nine months ended September 30, 2016 also declined at USD 5,956 million from USD 6,823 million in the same period previous year.

Coming to the production volume for the periods under review, total aluminium output for the three months ended September 30, 2016 grew from 9,16,000 tonnes in the same period previous year to 9,20,000 tonnes, a 0.4 per cent increase quarter-on-quarter. Total aluminium output in the nine months ended September 30, 2016, was estimated at 2.7 million tonnes, a 1.1 per cent rise from the output recorded in the last nine months of the previous fiscal.

Global aluminium demand grew by 5.5 per cent in the nine months to 30 September of 2016 year-on-year, as a result of strong demand in China, Europe, other Asia, North America and India. Rusal has raised its forecast for global aluminium demand to 5.5 per cent YoY to 59.5 million tonnes in 2016, driven by Chinese growth improvement to of 7.5 per cent to 31.2 million tonnes.

Commenting on the 2016 third quarter results, Vladislav Soloviev, CEO of RUSAL, said: “In Q3 2016, RUSAL reported robust financial results thanks to the company’s commitment to operational efficiency and cost discipline, supported by stronger LME prices... The company remains optimistic as we approach the year end, with aluminium consumption growing at a very healthy pace while supply remains tight due to stronger pressure from increasing cost inflation. Therefore Rusal has reviewed its global aluminium consumption growth forecast for the current year lifting it to 5.5 per cent per cent. Domestic demand for aluminium is also growing at a very healthy pace and RUSAL intends to boost its domestic sales reflecting the expected increase in consumption for aluminium in Russia and CIS, the market with significant potential for growth.”

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