RusAl’s Q1 Net Profit Falls 69% to $112 Mln

Russia’s RusAl, the world’s largest aluminum producer, saw its 2012 first quarter recurring net profit plummet 69 percent quarter-on-quarter to $112 million to IFRS, the firm said in a statement on Monday.

RusAl’s recurring net profit, defined as adjusted net profit plus the company’s effective share in Norilsk Nickel, was above a consensus forecast of $106.6 million by analysts polled by RIA Novosti.

RusAl said Revenue was up 2.7 percent quarter-on-quarter for the period between January-March 2012 to $2.882 billion.

It added that adjusted Earnings Before Interest, Taxation, Depreciation, Amortization (EBITDA) fell 38 percent to $237 million over the same period, with adjusted EBITDA margin falling to 8.2 percent from 13.6 percent “due to weaker aluminum price performance” at the London Metals Exchange in the reporting period.

“The first quarter of 2012 has proved to be a tough test for the aluminum industry with the global demand for the metal slowing down and the aluminum price weakening. Alongside the continued cost inflation, the challenging market environment weighed heavily on the profitability of aluminum producers,” RusAl CEO Oleg Deripaska was quoted in the statement as saying.

RusAl added that it had reduced Net Debt by 0.7 percent over the quarter to $11.126 billion as of March 31. The company said that global aluminum consumption in the first quarter of 2012 grew five percent year-on-year to 11.2 million tons “despite weak aluminum consumption in Europe,” with the average aluminum price falling to $2,177 per ton, down 13 percent year-on-year.


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