Russian aluminium major UC Rusal released results for the first half of the year this week. Although the continuing Russian invasion of Ukraine made the half difficult, buyers in Asia and Europe continued to buy primary aluminium from the smelting giant.
Revenue for the Russian company fell by 17 percent to US$5.9 billion, as European buyers pitched in US$1.9 billion of that total and Asian consumers contributed US$2.0 billion. Rusal chalked up the fall in revenue to a 24.2 percent of the price of the London Metal Exchange.
Adjusted EBITDA in the half dropped by 84 percent to US$290 million, while gross profit was off by 69.6 percent on the year to US$728 million. Again a drop in aluminium prices contributed mightily by the dive, as well as a 55- percent spike in the price of raw materials occasioned by the loss of suppliers in Australia and Ukraine.
Wet bauxite production in the half came to 6,754 thousand metric tons, up by 9.8 percent. Alumina refining totaled 2,518 thousand metric tons, falling by 23.7 percent on the year. Primary aluminium production for the first half was up 1.2 percent in the half to 1,913 thousand metric tons.
Rusal said in a press release that sales to Asian customers rose in the half by a tenth, but European buyers continued to make up nearly a third of its revenue, down only 9 percent on the year. Per the results released on Friday, it is apparent that buyers in European countries have continued to purchase its metal. Demand from the United States withered away thanks to a 200-percent import tariff on imported Russian aluminium.
Going forward, Rusal continues to plan to construct its own alumina refinery in Russia as part of a wider push to cut its reliance on overseas raw materials. Rusal also plans to continue to renegotiate its export sales as well.