Rusal reports a Y-o-Y rise in revenue by 36% to US$5,449 million despite flat aluminium production in 1H2021

In the Interim Results of 2021, Rusal, the world’s leading aluminium producer, has announced that its aluminium production in the six months ended June 30 stood flat at 1.868 million tonnes compared to 1.867 million tonnes a year ago. However, sales of both primary aluminium and alloys increased 5.8 per cent on year from 1.890 million tonnes to 2 million in H1 2021, resulting in the increase in revenue by 35.7 per cent from US$ 4,015 million in H1 2020 to US$ 5,449 million in H1 2021.

Adjusted EBITDA jumped by 500.50 per cent from US$ 219 million to US$ 1,315 million. At the same time cost of sales grew 8.5 per cent from US$ 3,520 million to US$ 3,819 million and gross profit from US$ 495 million to US$ 1,630 million.

Rusal’s total assets and net debt as of June 30 stood at US$ 20,466 million and US$ 4,099 million.

Bauxite and alumina production also grew by 2.3 per cent and 2 per cent, respectively, on a year-on-year basis to stand at 7.637 million tonnes and 4.102 million tonnes. Sales of alumina increased from US$ 242 million to US$ 276 million.

Rusal stated in its report in 1H2021, gradual recovery of all key markets for the aluminium industry continued following the collapse caused by the COVID-19 pandemic. The end of the pandemic and expectations of possible restrictions on stimulus and quantitative easing programs due to the rapid recovery of the global economy can potentially lead to an increase in the supply of metals, including aluminium, and to a correction in world prices for them.

Commenting on the 2021 Interim Results, Evgenii Nikitin, General Director of RUSAL, said: “The COVID-19 pandemic has continued to present significant economic challenges over the last few months, across all businesses and industries, as well as creating instability and volatility for the aluminium market and these challenges are still not completely behind us. Despite the disruption, we have been able to maintain an uninterrupted operational service for our customers, never letting quality standards slip, which is testament to the commitment and agility of our employees. Our Company has come a long way from being a primary aluminium producer to a preferred supplier of high-quality, sustainable VAP products for leading global brands. During these uncertain times, as a team and Company, we continue to focus on our long-term priorities, strategic vision and business goals, in order to meet our commitment of being the market leading low carbon aluminium producer.”

“This year, we announced an unprecedented overhaul program focused on building new production capacities at the smelters in Krasnoyarsk, Bratsk, Irkutsk and Novokuznetsk. The modernization program will help minimize the environmental impact of metallurgical production and reduce energy consumption by up to 20%. This largescale project will positively contribute to the development of cities and to the improved quality of life for residents where RUSAL has a presence. The work is preliminarily scheduled to start this year, with an expected completion date by 2030.”