RUSAL¡¯s 2018 net profit up 39% despite OFAC sanctions, expects global aluminium demand to rise by 3.7% YoY

RUSAL, a leading global aluminium producer, announced its results for the year ended 31 December 2018. Total revenue increased by 3.1% to USD10,280 million in 2018, as compared to USD9,969 million in 2017.

The company achieved net profit of USD1.698 billion, up 39% from USD1.222 billion in 2017. The recurring net profit stood at USD1.695 billion, as compared to USD1.573 billion in 2017.

Evgenii Nikitin, CEO of RUSAL, said: “Despite the OFAC Sanctions, RUSAL’s robust full year results demonstrated skillful crisis management alongside the ability to adapt to a new operations’ environment. It maintained its strong market position through its high managerial competence and operational flexibility. In 12M18, aluminium production totaled 3,753 thousand tonnes which is a 1.2% increase compared to the prior year. Total production dynamics remained largely stable with capacity utilization reaching 96%.”

“The key achievement of the year is that despite the OFAC Sanctions, the Company remained highly operational, avoided any seismic personnel cuts whilst maintaining well-established multi-industrial supply chains in the countries of operation; this signaled to customers and investors that our business model remains efficient, even in difficult times.”

Revenue from sales of primary aluminium and alloys was almost flat in 2018 compared to 2017. Revenue from sales of alumina increased 26.8% YoY to USD975 million in 2018.

Revenue from sales of foil and other aluminium products increased by USD23 million, or by 7.1%, to USD346 million in 2018, as compared to USD323 million in 2017. This was due to the growth in sales of other aluminium products (aluminium wheels).

Revenue from other sales, including sales of other products, bauxite and energy services increased by 20.4% to USD666 million for the year ended 31 December 2018.

“Looking ahead into 2019 and the forthcoming years, we expect aluminium demand to recover after the trade wars and supply shocks of late 2018. Alongside forecasting markets outside China to be in heavy deficit in 2019, we are confident that RUSAL is fully capable to leverage this trend.”

RUSAL expects global aluminium demand to rise by 3.7% YoY in 2019 to 68 million tonnes vs a 3.6% growth in 2018 YoY at 65.6 million tonnes.

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