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12 MAY 2017 AL CIRCLE

RUSAL reports robust financial results in Q1 2017, driven by operational efficiency and stronger LME prices

EDITED BY : BEETHIKA BISWAS 2MINS READ

UC RUSAL, the leading global aluminium producer reported robust financial results for the First Quarter of 2017, attributed to its operational efficiency and cost discipline, supported by stronger LME prices.

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As reported in the result, Rusal produced 910 thousand tons of aluminium in Q1 2017, registering a 2.1% drop quarter on quarter and 0.7% drop YoY.  This was offset by a 6.8% QoQ increase and 2.9% YoY growth in total aluminium sales volume at 985 thousand tons.   

In Q1 2017, the average realized all-in aluminium price increased 8.3% QoQ to USD1,949/t and 17% YoY. The increase was largely driven by the positive movement in London Metal Exchange price of aluminium in Q12017 at USD 1,850. The average realised aluminium premium was USD151 per ton for the fourth quarter.

Aluminium segment cost per tonne increased by 6.0% to USD1,425 in Q1 2017, because of the rise in electricity prices, railway transportation tariffs and other raw material costs.  Notwithstanding the cost increase, Rusal managed to maintain steady Adjusted EBITDA margin at 20.7%.

Increase in LME price for aluminium and total aluminium sales volume lifted RUSAL revenue in the first quarter of 2017 by 13.3% to USD2,297 million as compared to USD2,027 million last quarter. Revenue from sales of primary aluminium and alloys increased by USD326 million, or by 20.5%, to USD1,920 million in Q1 2017, as compared to USD1,594 million in the first quarter of 2016. Aluminium segment EBITDA per tonne increased 13.5% in comparison with preceding quarter to USD 505/t. The Adjusted Net Profit and Recurring Net Profit was at USD263 million and USD434 million, respectively, in the first quarter of 2017 as compared to USD44 million and USD207 million in the last quarter.

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Revenue from other sales, including sales of bauxite and energy services increased by 8.4% to USD129 million for Q1 2017 from USD119 million in Q1 2016. Total alumina sales revenue increased by 26.0%, to USD189 million in Q1 2017. Revenue from sales of foil increased by 15.7%, to USD 59 million in the Q1 2017, as compared to USD 51 million in Q1 2016, driven by increase in sales volumes and sales price.


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EDITED BY : BEETHIKA BISWAS 2MINS READ

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