Rusal's 2023 annual report: Production surge counters revenue dip from aluminium sales price decline

Rusal, the world’s second-largest aluminium company by primary aluminium output, has announced its financial and operational results for the full year 2023 ended December 31. The company posted that its primary aluminium production totalled 3.848 million tonnes in 2023, representing a slight growth from the previous year.

The company’s bauxite and alumina production increased significantly on an annual basis to 13.376 million tonnes and 5.133 million tonnes in 2023, up by 8.6 per cent and 13.8 per cent, respectively. 

Along with production, Rusal’s primary aluminium and alloys sales boosted 6.6 per cent year-on-year from 3.896 million tonnes to 4.153 million tonnes, driven by the release of excess inventory accumulated at the end of 2022.

 However, the growth in sales was offset by the decreased average sales price of aluminium, which was at US$2,439 per tonne in 2023 compared to US$2,976 per tonne in the previous year, while the sales price of alumina was US$343 per tonne versus US$362 per tonne. 

As a result of subdued metal prices, Rusal generated 12.6 per cent less revenue in 2023 at US$12,213 million, compared to US$13,974 million in 2022. Adjusted EBITDA at the end of 2023 was US$786 million, sharply down by 61.2 per cent from US$2,028 million.

Revenue from primary aluminium and alloys was US$10,129 million in 2023 versus US$11,593 million in 2022, while revenue from alumina and aluminium products, including foil, was US$340 million (US$550 million in 2022) and US$550 million (US$581 million in 2022) in 2023. 

Rusal’s 2023 net profit was US$282 million – 84.3 per cent less than US$1,793 million in 2022. Global economic uncertainty, high inflation, and the constant threat of recession drove the year 2023, affecting aluminium demand.

Nevertheless, despite all the headwinds, aluminium consumption increased worldwide to 70.2 million tonnes, up 1.7 percent from the previous year. Alone in China, aluminium consumption reached 42.8 million tonnes, up 4.9 percent year-on-year.

The worldwide supply of aluminium also rose by 3.4 per cent Y-o-Y to 41.5 million tonnes in 2023 and is expected to grow further in 2024 due to expected production capacity expansions.