Rusal Q4 soars on weaker rouble, sees aluminium supply gap

Russia's United Company Rusal Plc reported a more than six-fold rise in fourth-quarter earnings due to a slump in the rouble against the dollar and stronger aluminium prices, and forecast a deficit in aluminium supply in 2015 outside China.

The world's biggest aluminium producer warned, however, that aluminium premiums in Asia may come under pressure from rising exports of semi-manufactured products from China, the world's largest aluminium producer and consumer.

"Looking at the industry as a whole, we believe that global aluminum demand will grow by 6.5% in 2015 to 59 million tonnes, while production growth outside of China will continue to be limited, with 1.1 million tonnes remaining in supply deficit," Chief Executive Vladislav Soloviev said in a statement.

Rusal's adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) soared to $651 million in the final quarter of 2014 from $101 million a year earlier, just beating an average of seven analysts' forecasts at $637 million.

Recurring net profit - adjusted net profit plus its share of Norilsk Nickel's earnings - jumped to $660 million from a loss of $310 million a year earlier.

While many Russian companies have been hit by a downturn in the economy, exporters like Rusal have benefited from a 50 percent drop in the rouble in 2014 that has made their products cheap on dollar-denominated global markets and fattened their profit margins.