Primary Aluminium News - Market

Production cost surge fails to suppress Rusal’s aluminium output in 2022 but weighs on profit

AL Circle

On Friday, March 17, Rusal announced a higher aluminium production in 2022, mitigating several challenges like Australia’s alumina export ban to Russia, suspension of alumina production at the Mykolaiv refinery, and inflated production cost due to energy and raw materials price hike. Rusal’s aluminium output in the full year stood at 3.835 million tonnes, up by 1.9 per cent from 3.764 million tonnes in 2021 amid a 31.8 per cent rise in production cost to US$2,190 per tonne versus US$1,661 per tonne last year.

Production cost surge fails to suppress Rusal’s aluminium output in 2022 but weighs on profit

{alcircleadd}

Thanks to the efficient management model, Rusal could rebuild raw material supplies and supply chains and successfully diversify sales channels, redirecting finished product flows to domestic and Asian markets. Thus, the company’s aluminium sales recorded no significant downfall but stood steady at 3.896 million tonnes for 2022 versus 3.904 million tonnes in 2021.

However, Rusal’s adjusted EBITDA decreased by 29.9 per cent Y-o-Y to US$2.028 million from US$2,893 million. Adjusted EBITDA margin fell to 14.5 per cent from 24.1 per cent in 2021. The company’s profit also dwindled, owing to high production costs and no rise in sales. As per the annual result reported, Rusal’s 2022 profit stood at US$1,793 million, down by 44.4 per cent Y-o-Y.

However, the company’s revenue edged an increase of 16.5 per cent Y-o-Y from US$11,994 million to US$13,974 million, attributed to the rise in the average sales price of both aluminium and alumina from US$2,553 per tonne to US$2,976 per tonne and US$329 per tonne to US$362 per tonne, respectively, in tandem with the higher premiums over the LME aluminium price from US$250 per tonne to US$309 per tonne.

Global Aluminium Expo 2023

Rusal’s alumina and bauxite output, on the other hand, slumped by 28.3 per cent over the year from 5.953 million tonnes to 8.304 million tonnes in 2022 and 18 per cent on year from 15.031 million tonnes to 12.319 million tonnes.

The company revealed that its working capital at the end of December 2022 totalled US$4,833 million compared to US$2,930 million a year ago.

Edited By:


This news is also available on our App 'AlCircle News' Android | iOS


Alternate Text
EPIQ Machinery

A world class equipment designer specialized in developing innovative & effective solutions for heavy equipment, vehicles, and material handling systems

Alternate Text
RIA Cast House Engineering

Leading supplier of rail mounted precision Furnace Charging Machines and Furnace Skimming Machines

Alternate Text
Altek

Leading manufacturer of value-added equipment for the aluminum casthouse

Alternate Text
Jagannath Company

Manufacturers & Supplier of Magnesium Metal and Aluminium Foundry Chemicals

Alternate Text
CETAG

A supplier of proven systems and an expert adviser in aluminum casthouse technology, offering its services worldwide to the aluminum industry.

Related
Business Leads
Interested to buy aluminium ingot A7. Price : CIF China Tr...
22-Mar-2024 Buying request

Interested to buy aluminium ingot. Purity : 97% Destinatio...
21-Mar-2024 Buying request

We are looking for a company that can supply aluminium ingot...
21-Mar-2024 Buying request

Read this news article and much
more on the AL News app
Get real-time news and business
lead alerts on your phone
SUBSCRIBE NOW
Market

Market

Project

Project

Technology

Technology

Leads

Leads