Singapore 13/05/2016 - Rusal’s adjusted net profit fell 89.1 percent year-on-year to $27 million in January-March, the Russian aluminium producer said on Friday.
The company’s recurring net profit, which includes its interest in Norilsk Nickel, slipped 69.4 percent year-on-year to $149 million during the quarter.
Rusal had booked $1.91 billion in revenue during the quarter, down 22.7 percent year-on-year due to a decline in aluminium prices and premiums above London Metal Exchange prices.
Its average sales price slipped 27.5 percent year-on-year to $1,666 per tonne during the quarter.
“During the first quarter of 2016 amid turbulent commodity markets, Rusal continued focus was on tighter cost controls and operational efficiency,” Vladislav Soloviev, CEO of Rusal, said.
“Positive dynamics witnessed in the aluminium sector are supported by an accelerating ex-China deficit and solid demand fundamentals as the transportation sector continues to fuel global demand growth in primary aluminium,” he noted.
Rusal has forecasted a 2.4 million-tonne deficit in the aluminium market, excluding China, up from the 1.2 million-tonne deifict last year
“Further deleveraging remains a priority for Rusal in order to support our financial position,” Soloviev added.
In April, Rusal had reached new agreements with its lenders and fully executed its obligations to repay scheduled instalments under its Combined PXF Facility.
Rusal posted a year-on-year increase of 1.8 percent but decrease of 0.5 percent quarter-on-quarter for aluminium production to 916,000 tonnes in January-March.
Its first quarter primary aluminium and alloy sales were up 2.4 percent year-on-year and 9.2 percent quarter-on-quarter to 957,000 tonnes.
This sales increase was attributed to seasonal factors as there were lower sales in fourth quarter during the winter season. As well the addition of primary aluminium produced at Boguchansky aluminium smelter helped boost sales.
In 2015, Rusal accounted for approximately 7 percent of global production of aluminium.
(Additional reporting by Kathleen Retourne)