Help Desk -
9958816305, 9810335381
Email
Password

Rusal Announces 2019 Third Quarter and Nine Months Results

Metal News - Published on Mon, 11 Nov 2019

Image Source: i-scmp.com
Leading global aluminium producer RUSAL announced its results for the third quarter and nine months ended 30 September 2019. Revenue for the third quarter of 2019 by 14.8% to USD 2,486 million as compared to USD 2,918 million for the same period of the prior year. Revenue in the nine months of 2019 dropped by 8.8% to USD 7,222 million as compared to USD7,915 million for the same period of 2018, which was partially offset by a 9.8% increase in primary aluminium sales volume. EBITDA in the third quarter of 2019 decreased to USD 237 million representing a decline of 64.9% from USD 676 million for the corresponding period of 2018. This decrease was driven by the negative macroeconomic factors described above that were partially offset by improvement in cash cost by 3.7% to USD 1,612 per tonne in the third quarter of 2019 from USD 1,674 per tonne in the previous quarter of the year.

Evgenii Nikitin, CEO of RUSAL, said that “In the first nine months of the year, the market environment was challenging with sharply falling aluminium price. Coupled with the considerable decline of RUSAL's realized premiums by over 20% primarily due to reduced share of VAP sales influenced by the sanctions, this led to substantial decrease of RUSAL's revenue and EBITDA and affected our financial results. However, throughout this year we continued to gradually recover VAP sales and reached 40% in the third quarter, compared to just 29% in the first quarter. We expect the VAP share to restore in the beginning of 2020.”

He added “While the potential for future price recovery and market growth is still largely undermined by the ongoing US-China trade tensions, positive signs in the automotive markets across Europe and South America and the interest rate cut in Russia should boost demand for end-use aluminium in the upcoming year. Another source for future growth will come from the rising consumer demand for green aluminium as sustainability continues to advance as a major issue in the industry. Being one of the leading producers of green aluminium globally, RUSAL is ready to provide new opportunities for environmentally concerned consumers and investors. For instance, RUSAL has recently signed the first sustainability-linked pre-export finance facility in Russia for over USD 1 billion. The interest rate is subject to either a discount or premium depending on the Company's fulfillment of the sustainability KPIs. This demonstrates high level of trust towards the Company's sustainability initiatives, including ALLOW low-carbon aluminium brand, from the investment and banking community.”

Source :

Posted By : Rabi Wangkhem on Mon, 11 Nov 2019
Related News from Metal segment