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UC RUSAL announced 3 months and 9 months result

Metal News - Published on Thu, 08 Nov 2018

Image Source: SteelGuru
UC RUSAL a leading global aluminium producer, announces its results for the three and nine months ended 30 September 2018.

Key highlights
1.. Adverse effect of the OFAC Sanctions resulted in extraordinary low sales volume reported by the Company in the second quarter of 2018. Compared to this low base level there was a one-off recovery of sales volume through the third quarter of 2018.

2. Thus, the Company reported 33.6% growth in volumes of primary aluminium and alloys sold in the third quarter of 2018 upon the extension of Company’s general licenses, after a significant reduction in the second quarter of 2018. Revenue in the third quarter of 2018 increased by 18.6% to USD2,918 million as compared to USD2,460 million in the third quarter of 2017. The result was an improvement of financial and operating indicators in the third quarter of 2018.

3. Sales of primary aluminium and alloys for the nine months of 2018 decreased by 5.4% to 2,794 thousand tonnes, as compared to 2,955 thousand tonnes sold through nine months of 2017, while sales of alumina dropped by 4.5% to 1,457 thousand tonnes for the nine months 2018, as compared to 1,526 thousand tonnes sold through nine months of 2017. Revenue for the nine months of 2018 increased by 9.6% to USD7,915 million as compared to USD7,224 million for the nine months of 2017 which reflects higher average aluminium sales price, premiums and alumina prices.

4. The third quarter of 2018 was characterized by the rising aluminium market deficit outside of China, as well as the decline in available aluminium stocks to lowest levels in ten years. The situation has caused upside price volatility at the highest levels.

5. As a result of the above and due to the depreciation of Russian Rouble against US dollar in the third quarter of 2018, the Company profit for the third quarter of 2018 increased by 46.3% to USD597 million, as compared to USD408 million in the second quarter of the year. However the adjusted net profit (the net profit adjusted for the net effect of the Company’s investment in Norilsk Nickel, the net effect of derivative financial instruments and the net effect of non-current assets impairment) for the nine months of 2018 increased by 20.1% to USD873 million as compared to USD727 million for the nine months of 2017.

6. Production cost per tonne in aluminium segment amounted to USD 1,658 and increased by 12.3% in the nine months of 2018 as compared to the same period of 2017 as a result of significant increase in electricity, key raw materials prices and railway transportation tariffs.

Source :

Posted By : Rabi Wangkhem on Thu, 08 Nov 2018
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