RusAl posts 250% net profit growth in 2010

RusAl, the world’s largest aluminum company, saw net profits jump 250% year on year in 2010 to $2.867 billion to IFRS, RusAl said on Thursday.

RusAl’s net profit was above a consensus forecast of analysts polled by RIA Novosti who expected the aluminum giant’s net financial profit to reach $1.876 billion.

The company’s revenue for the year grew 34.5% to $10.979 billion as a result of higher aluminum prices, an improved product range and premiums, RusAl said in a statement.

Revenue from alumina sales rose 45.6% to $597 million and revenue from the sale of aluminum foil products grew to $293 million from $243 million in 2009, while the sales of other products, excluding bauxites, increased by 21.4% to $867 million.

The sales of primary aluminum and alloys grew by 36% as a result of a 35.5% increase in the average selling price per ton compared with 2009. Sales volumes expanded to 4.085 million tons last year against 4.069 million tons in 2009.

RusAl’s net debt fell to $11.472 billion in 2010, the company said.

Adjusted EBITDA grew by 335.7% to $2.597 billion owing to an increase in the average selling price and sales volumes.

“2010 saw UC RusAl deliver excellent financial performance with both revenue and profits showing substantial gains on our 2009 results,” RusAl CEO and owner Oleg Deripaska said in a statement.

“Our EBITDA margin has risen to 23.7% and earnings per share have increased three times. This strong growth was driven by a significant increase in demand and prices for our metal which we were able to meet through productivity enhancement programs, enabling the company to remain as the world’s leading aluminum producer at the end of 2010.”

In the reporting period, RusAl significantly decreased its net debt to EBITDA ratio and increased its strategic flexibility and development capabilities,” the firm said.

“This enabled us to respond to improving market conditions by launching new and restarting previously idled operations as well as moving ahead with our large-scale investment projects.”

MOSCOW, March 31 (RIA Novosti)

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