Strengthened Aluminium Demand and Rising Prices Bolster Rusal’s 2017 Numbers

rusal aluminium

Russian Federation aluminium titan U.C. Rusal released numbers for the fourth quarter and full year 2017 on Friday. Strengthened demand and recovering aluminium prices helped the firm post almost uniformly positive results in both the production and financial arenas.

In the fourth quarter of 2017, Rusal produced 945 thousand metric tons of primary aluminium, up 1.6 percent from the previous year’s fourth-quarter total of 930 thousand metric tons, and up 1.5 percent quarter-on-quarter from the third-quarter total of 931 thousand metric tons.

Rusal refined 1,991 thousand metric tons in the quarter, better by 2.7 percent from 2016’s Q3 total of 1,939 thousand metric tons, and besting the prior quarter’s total of 1,965 thousand metric tons by 1.3 percent.

During the fourth quarter last year, Rusal mined a total of 2,944 thousand metric tons of bauxite ore, better by 3.6 percent from the fourth quarter of 2016’s total of 2,841 thousand metric tons, and 7.4 percent better than the previous quarter’s total of 2,742 thousand metric tons.

Rusal sold one million metric tons of aluminium and alloys in the fourth quarter, which was 8.5 percent above 2016’s fourth-quarter total of 922 thousand metric tons, and 3.3 percent above the prior quarter’s total of 968 thousand metric tons.

Revenue in the quarter totaled US$2,745 million, better by 35.4 percent from last year’s fourth-quarter total of US$2,027 million, and up 11.6 percent quarter-on-quarter from last quarter’s total of US$2,460 million. Despite facing significant pressure from the cost of production, adjusted EBITDA in the quarter came to US$586 million, better by 42.2 percent from last year’s fourth-quarter total of US$412 million, and 6.7 percent above the previous quarter’s total of US$549 million.

Profits in the period totaled US$440 million, off by 31.8 percent from last year’s fourth-quarter profit of US$645 million, but better by 41 percent from the prior quarter’s total of US$312 million. Adjusted net profit totaled US$350 million, 695.5 percent beyond the fourth quarter of 2016’s number of US$44 million, and 33.6 percent above the Q3 tally of US$262 million.

For the year the firm turned out 3,707 thousand metric tons of primary aluminium, an increase of 0.6 percent over 2016’s total output of 3,685 thousand metric tons.

The year saw Rusal refine a total of 7,773 thousand metric tons of alumina, a 3.3-percent improvement over 2016’s full-year total of 7,528 thousand metric tons.

In 2017 the firm brought 11,645 thousand metric tons of bauxite ore to the surface, down by 4.4 percent from the prior year’s total of mined bauxite of 12,187 thousand metric tons.

For the year the firm sold 3,955 thousand metric tons of aluminium and alloys, up by 3.6 percent from 2016’s total of 3,181 thousand metric tons.

Revenue for the year totaled US$9,969 million, a 24.9-percent improvement over 2016’s total of US$7,983 million. Adjusted EBITDA totaled US$2,120 million, an improvement of 42.4 percent over 2016’s total of US$1,489 million, and the highest such total since 2012. Profits for the year came in at US$1,222 million, better by 3.6 percent from 2016’s take of US$1,179 million. Adjusted net profit totaled US$1,077 million, well above the prior year’s total of US$292 million, a 268.8-percent jump.

Vladislav Soloviev, CEO of Rusal, noted the company’s strong performance and positive outlook for the current year and beyond.

“RUSAL’s fourth quarter and full year results demonstrated continued momentum. The Company delivered robust operating results and sales volumes growth, which, coupled with the LME price’s solid improvement, led to the fourth quarter revenue increasing by 11.6% quarter-on-quarter (“QoQ”) to USD2,745 million. Despite a rise in cost inflation, RUSAL’s management succeeded in keeping costs under control to reach USD586 million in EBITDA with a healthy margin of 21.3% in the last quarter of the year.

“The full year results seemingly demonstrated RUSAL’s solid position in its core business. Revenue increased to nearly USD10 billion while full year 2017 EBITDA was up by 42.4% to reach USD2,120 million. Importantly, 2017 saw RUSAL achieve further progress in key strategic priorities. Production of value added products reached approximately 50% in total output. We launched our bespoke brand of low carbon aluminium, “ALLOW”, which we believe will be in demand from climate-conscious customers. We also expanded our product portfolio with new downstream acquisitions.”



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