MOSCOW, Apr 12, 2010 - (ACN Newswire) - UC RUSAL plc (SEHK: 486, EuroNext: RUSAL/RUAL)("UC RUSAL" or "Company"), the world's largest aluminium producer, announces its financial results for the year ended 31 December 2009.
Key Highlights
-- Net profit of US$821 million for 2009 compared to net loss
of US$5,984 million for 2008, 89% above the Company's forecast
for the year ended December 2009
-- Cost Efficiency Leader initiative launched to reduce costs and
optimise management structure, resulting in aluminium cash
operating costs decreasing by 23% to US$1,471 per tonne and
alumina cash operating costs decreasing by 27% to US$257 per tonne
-- Revenue decreased by 48% to US$8,165 million due to lower aluminium
prices and sales volumes
-- Aluminium production reduced by 11% to 3.9 million tonnes by
cutting production at the least efficient smelters
-- Alumina production restricted by 36% to 7.3 million tonnes by temp-
orarily suspending production at relatively high cost refineies
-- Bauxite production scaled back by 41% to 11.3 million tonnes
-- Investments(1) in development of existing facilities and
construction of new assets amounted to US$420 million
-- Adjusted EBITDA(2) decreased by 83% to US$596 million due to a
decrease in operating results and a significant drop in market
prices which was attributable to the adverse economic environment
-- Comprehensive debt restructuring reached with more than 70
international and Russian banks rescheduling US$16.6 billion(3)
of debt and other obligations
-- Market value of the company's investment in OJSC MMC Norilsk Nickel
("Norilsk Nickel") increased by 123% in 2009. The market
capitalisation of the investment exceeded US$6.7 billion as of
31 December 2009(4)
-- Successful listing on Hong Kong and Euronext Paris stock exchanges
(the "IPO") completed on 27 January 2010
Commenting on the today's announcement, Oleg Deripaska, CEO of UC RUSAL said, "2009 was a year of transformation for UC RUSAL. It was also one of the toughest on record for the global economy, commodity markets in general and, in particular, the aluminium industry. We took decisive action to counter the adverse effects of the downturn by significantly reducing costs and reshaping the company to leave it better placed to benefit from the upturn. We improved our balance sheet by reaching agreement with our lenders on the terms of a comprehensive US$16.6 billion debt restructuring with more than 70 banks. We also completed the preparatory work to enable our IPO to proceed. UC RUSAL emerged from this challenging period with its market leadership position enhanced and significantly strengthened."
"We are now a quoted company, listed in Hong Kong and Paris, and fully intend to benefit from improving market conditions and our proximity to the fast growing market in China and other parts of Asia by utilising our access to low cost energy and realising attractive growth opportunities from restarting idle capacity and investment in unique greenfield projects. I am confident that our competitive advantages, supported by the increasing value of the Norilsk Nickel investment and positive aluminium price momentum which is expected to continue in 2010, will drive the value of the Company forwards in the interest of all shareholders."
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Key selected date Year ended 31 December Change
2009 2008 year-on-
year(%)
----------------------------------------------------------------------
Aluminium and alumina price information
(US$ per tonne)
Aluminium price per tonne quoted
on the LME(5) 1,668 2,571 (35%)
Alumina price per tonne(6) 244 374 (35%)
----------------------------------------------------------------------
Key operating data(7)
('000 tonnes)
Aluminium 3,946 4,424 (11%)
Alumina 7,279 11,317 (36%)
Bauxite (million tonnes wet) 11.3 19.1 (41%)
Aluminium foil and packaging products 67.8 68.5 (1%)
----------------------------------------------------------------------
Selected statement of comprehensive income data
(US$ million)
Revenue 8,165 15,685 (48%)
Cost of sales (6,710) (11,073) (39%)
of which energy costs (1,880) (2,044) (8%)
Gross profit 1,455 4,612 (68%)
Distribution expenses (566) (798) (29%)
----------------------------------------------------------------------
Administrative expenses (713) (1,103) (35%)
Impairment of non-current assets (68) (3,668) (98%)
Results from operating activities (63) (1,228) (95%)
(excluding the impact of
impairment charge) 5 2,440 (100%)
margin (% of revenue) (0.1%) 15.6% -
Adjusted EBITDA 596 3,526 (83%)
margin (% of revenue) 7.3% 22.5% -
Finance income 1,321 106 1,146%
Finance expenses (1,987) (1,594) (25%)
Share of profits/(losses) and
impairment of associates 1,417 (3,302) -
Income tax (expense)/benefit (18) 69 -
Net income/(loss) for the year 821 (5,984) -
----------------------------------------------------------------------
Selected statement of financial position data
(US$ million)
Total assets 23,886 24,005 (0.5%)
Total working capital(8) 1,477 2,746 (46%)
Net financial debt(9) 13,633 13,263 3%
----------------------------------------------------------------------
Selected cash flow statement data
(US$ million)
Net cash flows generated from
operating activities 321 3,043 (89%)
Net cash flows used in
investing activities (301) (5,828) (95%)
of which capex(10) (239) (1,348) (82%)
----------------------------------------------------------------------
Selected ratios
Net debt to Adjusted EBITDA(11) 22.9:1 3.8:1 -
----------------------------------------------------------------------
Market review(12)
2009 was one of the toughest years on record for the global economy and commodity markets, including the aluminium industry. According to CRU Group (an independent business analysis and consultancy group focused on the mining and metals industries), the global recession resulted in an 8.2% decrease in demand for aluminium in 2009 compared to 2008, and the average price of aluminium dropped by 35% compared to 2008. Major industry players including UC RUSAL responded to the adverse market environment by curtailing production. The global capacity utilisation rate in 2009 is estimated at 76% compared with 89% in 2008.
From the second half of 2009, global demand for aluminium and other commodities has been supported by the growing Chinese economy, which was aided by a US$685 billion stimulus programme to promote economic growth through major infrastructure projects and a range of measures to stimulate demand for industrial products, including in the automotive industry. The revival of developed economies by late 2009 initiated restocking throughout the aluminium production chain.
Business review
Aluminium
UC RUSAL responded swiftly to the global economic downturn by reducing total attributable aluminium output to 3.946 million tonnes in 2009, a decrease of 11% compared to 2008. The lower volume was, in part, caused by the cut of production at the Company's least cost-efficient smelters being the Novokuznetsk, Bogoslovsk, Volkhov, Nadvoitsy, Kandalaksha and Urals Aluminium Smelters in Russia and the Zaporozhye Aluminium Smelter in Ukraine. The Company announced the restart of mothballed capacity at some aluminium smelters in the first quarter of 2010.
Alumina
The total attributable alumina output was curtailed to 7.279 million tonnes in 2009, a decline of 36% as compared to 2008. Production was cut at relatively high cost alumina facilities, such as Aughinish (Ireland), Zaporozhye Alumina Refinery (Ukraine), Achinsk Alumina Refinery (Russia) and Boxitogorsk Alumina Refinery (Russia). Production was also suspended temporarily at Eurallumina (Italy), Windalco (Jamaica) and Alpart (Jamaica). These output reduction measures effectively balanced the Company in terms of its alumina requirements, helping to optimise its financial performance.
Bauxite
Due to weakened demand, the Company's overall bauxite production was reduced to 11.3 million tonnes in 2009, a reduction of 41% as compared to 2008.
Cost Efficiency Leader initiative
The Company's cash operating costs per tonne of aluminium is a key operating metric. In February 2009, UC RUSAL launched its "Cost Leader Efficiency" initiative targeting a reduction in costs, optimisation of production processes and reorganisation of the management structure. Ambitious targets were set for each of these elements with the aim of UC RUSAL being the most cost effective aluminium producer in the world. The results of the initiative are set out below in the "Cash operating costs per tonne" section.
Norilsk Nickel investment
According to consensus forecast(13), Norilsk Nickel's net income in 2009 is expected to increase to US$1,693 million from a net loss of US$555 million in 2008. The market value of the Company's stake in Norilsk Nickel increased by 123% from US$3,011 million as at 31 December 2008 to US$6,707 million as at 31 December 2009 due to positive share price performance in the reported year.
Financial Overview
Revenue
Revenue decreased by 48% to US$8,165 million in 2009 compared to US$15,685 million in 2008. The decrease in revenue was primarily due to decreased sales of primary aluminium and alloys, which accounted for 83% of revenue for 2009 and 77% in 2008.
The decrease in revenue was primarily due to the steep decline in worldwide aluminium prices, alumina sales prices and prices of other products (foil, bauxite, silicon, soda) resulting in reduction in revenue from sales of US$5,380 million. The effect of decreased prices was coupled with the decrease in production volumes of primary aluminium and alloys at the higher cost facilities and suspending a number of higher cost alumina refineries, as a response to the downturn in the aluminium industry. As a result of decreased sales volumes, revenue fell by US$1,626 million. Other income and revenue from sales of other products reduced by US$514 million, which was caused by a decrease in demand and the general economic downturn around the world.
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Year ended 31 December 2009
US$ kt Av. sales price
million (US$/tonne)
----------------------------------------------------------------------
Sales of primary aluminium and alloys 6,770 4,069 1,663
Sales of alumina 410 1,640 250
Sales of foil 243 70 3,471
Other revenue(14) 742 - -
Total revenue 8,165
----------------------------------------------------------------------
Year ended 31 December 2008
US$ kt Av. sales price
million (US$/tonne)
----------------------------------------------------------------------
Sales of primary aluminium and alloys 12,057 4,435 2,719
Sales of alumina 1,948 5,464 357
Sales of foil 271 60 4,517
Other revenue(14) 1,409 - -
Total revenue 15,685
----------------------------------------------------------------------
Sales of primary aluminium and alloys decreased by 44% primarily due to a fall in average realized prices per tonne (by 39% year-on-year). Sales volumes decreased by 366 thousand metric tonnes or 8% to 4,069 thousand metric tonnes in 2009, from 4,435 thousand metric tonnes in 2008. The decrease in sales volumes principally resulted from the reduction in aluminium production at less cost efficient smelters.
Revenue from sales of alumina decreased by 79% to US$410 million in 2009 from US$1,948 million in 2008. The decrease in revenue was primarily attributed to a significant decrease of production volumes. In 2009, UC RUSAL continued to sell alumina to external parties only under specific long-term contracts. Average sales prices decreased by 30% in 2009 as compared to 2008. The sales volume decreased by 70% to 1,640 thousand metric tonnes in 2009.
Revenue from sales of foil decreased immaterially from US$271 million in 2008 to US$243 million in 2009, which accounted for 2% and 3% of UC RUSAL's revenue for 2008 and 2009, respectively. Production volumes remained relatively stable with a slight decrease of approximately 1% in 2009 while sales volume grew from 60 thousand metric tonnes in 2008 to 70 thousand metric tonnes in 2009. The decrease in revenue from the sales of foil was primarily due to a decrease in the average realised price.
Revenue from other sales, including chemicals and energy, decreased to US$742 million or by 47% in 2009 from US$1,409 million in 2008. The main factors contributing to the decrease in other sales were reductions in prices and volumes of various by-products and secondary materials following the overall economic downturn and the resulting decrease in capacity of a number of the Company's production entities.
Revenue decreased in a majority of UC RUSAL's geographic segments from 2008 to 2009. The revenue decline in Europe was relatively slow and UC RUSAL focused on maximizing revenue by shifting sales to those markets with higher premiums. The Commonwealth of Independent States ("CIS") and America segments were particularly affected in the beginning of 2009 as a result of a dramatic slow-down in industries using the Company's products in these regions, including, among others, construction and car manufacturing. The share of sales in Asia was unchanged as a percentage of the total revenue mainly due to the fact that demand decreased to a lesser extent in China than in other markets. The share of sales particularly in China increased from 3% in 2008 to 6% in 2009. UC RUSAL is well positioned to continue expanding sales in China after the increase in sales to this market in 2009. Although the average premiums in 2009 were lower than in 2008 (US$55 per tonne and US$75 per tonne, respectively), dynamics show a strong momentum in the recovery process from almost US$0 per tonne at the beginning of 2009 to US$43 per tonne for the first half of 2009 and further to US$76 per tonne in December 2009 resulting in premiums of US$55 per tonne for 2009.
Cost of sales
Cost of sales decreased by 39% to US$6,710 million in 2009 compared to US$11,073 million in 2008. The decrease was in line with the overall decrease in production and sales volumes of both aluminium and alumina, as described above, with certain costs also affected by the depreciation of the Russian rouble ("RUR") against the US dollar in 2009 compared to 2008. The cost of other raw materials and other costs of sales accounted for the largest decrease in cost of sales, in absolute terms, over the period.
----------------------------------------------------------------------
Year ended 31 December 2009 2008 Change
(US$ million) year-on-year(%)
----------------------------------------------------------------------
Cost of alumina 982 1,478 (34%)
Cost of bauxite 374 763 (51%)
Cost of other raw materials 2,253 4,243 (47%)
Energy costs 1,880 2,044 (8%)
Depreciation and amortization 554 990 (44%)
Personnel expenses 774 995 (22%)
Repairs and maintenance 115 222 (48%)
Change in asset retirement
obligations 29 (1) -
Net change in provisions for
inventories (251) 339 -
Total cost of sales 6,710 11,073 (39%)
----------------------------------------------------------------------
Energy costs decreased by US$164 million, or 8.0%, to US$1,880 million in 2009 compared to US$2,044 million in 2008. The decrease in electricity costs over the period resulted primarily from decreased consumption, the effect of which was partially offset by increased tariffs and RUR depreciation. Consumption in 2009 decreased due to decreased production volumes. The increase in weighted-average electricity tariffs was mainly due to continued market liberalisation and increased share of electricity sold through the wholesale market.
Electricity tariffs are generally quoted in RUR and increased in line with the Russian consumer price index. The depreciation of the RUR against the US dollar in 2009 compared to 2008 had a corresponding effect on the electricity tariffs. As a percentage of revenue, energy costs increased from 13.0% in 2008 to 23.0% in 2009.
Gross profit
As a result of these factors, UC RUSAL reported a gross profit of US$1,455 million and US$4,612 million in 2009 and 2008 respectively, representing gross margins of 18% and 29%, respectively.
Distribution expenses
Distribution expenses decreased by 29% to US$566 million in 2009, compared to US$798 million in 2008. The decrease was mainly due to decreased sales volumes and a reduction in transportation expenses through optimising logistics schemes, expanding the transportation range, choosing new routes, selecting transport operators on a tender basis and negotiating new transportation terms.
Administrative expenses
Administrative expenses decreased by 35% to US$713 million in 2009, as compared to US$1,103 million in 2008, due to reduction of expenses for consulting services, Russian and international representative offices, and cuts of management staff. Personnel costs recorded under administrative expenses decreased by 38% to US$226 million in 2009 from US$364 million in 2008. The Company saw an overall reduction in headcount by 16% or 14,000 employees, compared to 2008, to 75,800 in 2009.
Results from operating activities
As a result of the foregoing factors, UC RUSAL reported a loss from operating activities of US$63 million in 2009, as compared to a loss from operating activities of US$1,228 million in 2008, representing negative operating margins of (1%) and (8%), respectively. The Cost Efficiency Leader initiative implemented by the Company offset a portion of the revenue loss resulting from a lower aluminium price.
Adjusted EBITDA
Adjusted EBITDA, being results from operating activities adjusted for amortisation and depreciation, impairment charges and loss on disposal of property, plant and equipment, decreased by 83% to US$596 million in the reporting year, as compared to US$3,526 million in 2008. The key influencing factors were operating results and a significant decrease in market prices resulting from adverse economic conditions.
----------------------------------------------------------------------
Year ended 31 December 2009 2008 Change
(US$ million) year-on-year(%)
----------------------------------------------------------------------
Reconciliation of Adjusted EBITDA
Results from operating activities (63) (1,228) (95%)
Add:
Amortisation and depreciation 586 1,030 (43%)
Impairment of non-current assets 68 3,668 (98%)
Loss on disposal of property,
plant and equipment 5 56 (91%)
Adjusted EBITDA 596 3,526 (83%)
----------------------------------------------------------------------
Profit/(loss) before income tax
UC RUSAL made a profit before income tax of US$839 million for the year ended 31 December 2009, as compared to a loss before income tax of US$6,053 million for the year ended 31 December 2008. This was mainly due to the share of profits/(losses) of associates (which increased by US$4,719 million to a profit of US$1,417 million in 2009, as compared to a loss of US$3,302 million in 2008); finance income (which increased by US$1,215 million to US$1,321 million in 2009, compared to US$106 million in 2008); and results from operating activities (which increased by US$63 million to US$1,165 million in 2009, compared to a loss of US$1,228 million in 2008).
Net profit/(loss) for the year
As a result of the above, UC RUSAL recorded a net profit of US$821 million for the year ended 31 December 2009, as compared to a net loss of US$5,984 million for the year ended 31 December 2008. The net profit uplift of 89% compared to the amount forecast in December 2009 was primarily due to an increase in the share in profits of associates.
Cash operating costs per tonne
As a result of implementing the Cost Efficiency Leader initiative, aluminium cash operating costs have been reduced by 23% or US$444 per tonne (inclusive of exchange rate effects) from an average of US$1,915 per tonne for the year ended 31 December 2008 to an average of US$1,471 per tonne for the year ended 31 December 2009. The principal contributors to this reduction were decreases of US$197 per tonne or 25% in alumina costs, US$105 per tonne or 32% in raw and auxiliary materials costs due to increased efficiency and focus on supply contracts, US$35 per tonne or 9% in energy costs due to a secured electricity supply in Siberia by entering into long term electricity supply contracts, US$21 per tonne or 24% in transportation costs by focusing on optimising the use of rolling stock, US$58 per tonne in repair and pot relining costs, US$29 per tonne in overhead expenses and US$26 per tonne in salaries and social programs. Mothball and other expenses increased by $US28 per tonne.
The Company's alumina cash operating costs have also been decreased by 27% or US$92 per tonne from an average of US$349 per tonne for the year ended 31 December 2008 to an average of US$257 for the year ended 31 December 2009. The principal factors in achieving this reduction were decreases of US$40 per tonne or 32% in power consumption costs by optimising fuel sources and a decline in price for oil products, US$32 per tonne or 20% in raw materials costs due to reduced cash costs at the mines and optimised bauxite mix, US$7 per tonne in shop expenses, US$5 per tonne in changes in work-in-progress, US$4 per tonne in payroll, US$3 per tonne in plant expenses, US$1 per tonne in social programmes, US$0.5 per tonne in commercial expenses.
A substantial portion of the reductions in aluminium and alumina cash operating costs was attributable to mothballing higher cost smelters and refineries during 2009 as well as the introduction of energy-saving technologies. The weakening of the RUR against the US dollar and other currencies also contributed significantly to the reductions.
Debt restructuring
In December 2009, the Company completed restructuring negotiations with its lenders in order to establish financial stability and to put the necessary arrangements in place to allow the Company to meet its obligations when they fall due as part of ongoing operations.
Debt restructuring terms provide the Company with greater time and flexibility to meet debt obligations as the aluminium prices recover. The terms link debt repayment to the ability to generate excess operating cash flow, allow for payment-in-kind interest and interest rate margin decreases with an improving debt / EBITDA ratio. A substantial portion of the Onexim liability has been converted to equity.
Events subsequent to the end of the financial year
On 27 January 2010, the Company successfully completed a dual placing on the Main Board of The Hong Kong Stock Exchange and Euronext Paris. Upon placing, the Company issued 1,636,363,646 new shares in the form of shares listed on The Hong Kong Stock Exchange, and in the form of global depositary shares ("GDS") listed on Euronext Paris representing 10.81% of the Company's issued and outstanding shares.
The Company raised approximately US$2,236 million from the listings of which US$ 2,143 million has been used to repay principal debt owed by the Company to its international and Russian lenders (excluding VEB) as well as principal debt and accrued interest to Onexim. In addition, UC RUSAL has paid fees to its international lenders in connection with the debt restructuring.
As a result of the debt repayments, UC RUSAL's total outstanding debt including debt owing to Onexim was reduced to US$12.9 billion as at 1 February 2010 (by 13% compared to 31 December 2009). These debt repayments to the Company's international and Russian lenders exceed the debt repayment target until the end of 2010. These repayments allowed the Company to make progress towards meeting its next debt repayment targets ahead of schedule, with US$3.3 billion remaining to be repaid to lenders for the Company to meet the target due by the end of 2013. The Company is ahead of its 2010 target cumulative payments of US$1.4 billion, and the event of default cumulative amounts of US$0.75 billion and is close to its event of default cumulative amounts for 2011 of US$2 billion.
The Company will explore refinancing options via a potential bond issues in the near future.
Outlook for 2010
A number of experts are forecasting that 2010 will see considerable growth of the aluminium market generated by rising demand from the construction and transport sectors, which account for about half of the global aluminium consumption. CRU Group analysts expect aluminium consumption to grow by 12.6% in 2010 as compared to 2009. Positive dynamics are expected to be driven primarily by continued economic development in China and India due to growing urbanisation. The Company expects aluminium consumption growth in Russia of 26% in 2010. Demand for aluminium is also expected to be supported by the major developed countries as the global economy revives. The Company expects aluminium prices to remain above US$2,000 per tonne throughout 2010 supported by improving demand fundamentals.
Assuming the gradual restoration of the market in 2010, UC RUSAL plans to increase production of aluminium by 3% in 2010, compared to 2009. The increase is expected to include an increase in production at the Siberian plants, KUBAL (Sweden) and potline 5 at the Irkutsk Aluminium Smelter in Russia reaching its full production capacity. In 2010, the Company also intends to increase sales of alloys and value-added products from 46% (including 18% of alloys) in 2009 to 60% (including 35% of alloys) in 2010.
On the basis of the same assumptions, UC RUSAL expects to increase alumina output by 11% in 2010 compared to 2009, by stabilising alumina production at the Achinsk Alumina Refinery, Bogoslovsk and Urals Aluminium Smelters, as well as restoring production at the Boksitogorsk Alumina Refinery in Russia, Windalco (Ewarton) Alumina Refinery in Jamaica, the Aughinish Alumina Refinery in Ireland, The Friguia Refinery in Guinea, the Queensland Refinery in Australia and the Nikolaev Refinery in Ukraine.
Cash operating costs remain the key factor determining competitiveness of a company in the aluminium sector. UC RUSAL will continue its Cost Efficiency Leader initiative to further improve the Company's effectiveness and optimise the cost structure to cut costs. The Company will continue focusing on efficiency improvements by optimisation of raw materials supply, power consumption, logistics, reduction in overheads and roll-out of UC RUSAL's operational systems, as well as steady deleveraging through operating cash flows.
The Company plans to increase aluminium production by around 100,000 tonnes and alumina production by around 800,000 tonnes in 2010 by restarting mothballed capacity. The Company has made a decision to put the Windalco (Ewarton) Alumina Refinery in Jamaica on stream with total capacity of 650,000 tonnes.
In the long run, the Company expects to pursue a number of growth options, including the completion of the Taishet and Boguchansky Aluminium Smelters in Russia with maximum capacity of 750 kilotonnes per annum and 588 kilotonnes per annum respectively. The Company will continue implementing its core investment project - the construction of the Boguchanskaya Hydro Power Plant ("BEMO HPP") in Russia which will assist the Company to maintain an abundant hydro-power source for its smelters in Siberia. The 3GW BEMO HPP construction is on track to produce its first electricity by the end of 2010.
The remaining capital expenditure(15) required for BEMO HPP are currently estimated at approximately US$529 million, US$1,156 million for the Boguchansky Aluminium Smelter and US$1,469 million for Taishet Aluminium Smelter. UC RUSAL will continue to explore project finance options for the BEMO HPP and / or the Taishet smelter.
Financial Statements
The following information was extracted from the consolidated audited financial statements of the Company for the year ended 31 December 2009, which were approved by the Directors of the Company on 9 April 2010.
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Consolidated Statement of Financial Position
Year ended 31 December 2009 2008 Change
(US$ million) year-on-year(%)
----------------------------------------------------------------------
Non-current assets
Property, plant and equipment 6,088 6,602 (8%)
Intangible assets 4,112 4,187 (2%)
Interests in associates 8,968 7,536 19%
Interests in jointly controlled
entities 778 506 54%
Financial investments 54 - -
Deferred tax assets 144 59 144%
Other non-current assets 118 43 174%
Total non-current assets 20,262 18,933 7%
----------------------------------------------------------------------
Current assets
Inventories 2,150 2,938 (27%)
Trade and other receivables 1,238 1,426 (13%)
Cash and cash equivalents 236 708 (67%)
Total current assets 3,624 5,072 (29%)
Total assets 23,886 24,005 (0%)
----------------------------------------------------------------------
Equity and liabilities
Equity
Share capital - - -
Share premium 13,641 12,517 9%
Other reserves 3,081 2,912 6%
Currency translation reserve (3,527) (3,257) 8%
Accumulated losses (6,863) (7,684) (11%)
Total equity attributable to
shareholders of the Company 6,332 4,488 41%
Non-controlling interests - - -
Total equity 6,332 4,488 41%
----------------------------------------------------------------------
Non-current liabilities
Loans and borrowings 11,117 - -
Provisions 385 393 (2%)
Deferred tax liabilities 512 509 1%
Derivative financial liabilities 510 -
Other non-current liabilities 62 27 130%
Total non-current liabilities 12,586 929 1,255%
----------------------------------------------------------------------
Current liabilities
Loans and borrowings 2,752 13,971 (80%)
Income tax payable 44 48 (8%)
Trade and other payables 1,911 1,618 18%
Deferred consideration - 2,782 -
Derivative financial liabilities 60 -
Provisions 201 169 19%
Total current liabilities 4,968 18,588 (73%)
Total liabilities 17,554 19,517 (10%)
Total equity and liabilities 23,886 24,005 (0%)
Net current liabilities (1,344) (13,516) (90%)
Total assets less
current liabilities 18,918 5,417 249%
----------------------------------------------------------------------
Consolidated Statement of Income
Year ended 31 December 2009 2008 Change
(US$ million) year-on-year(%)
----------------------------------------------------------------------
Revenue 8,165 15,685 (48%)
Cost of sales (6,710) (11,073) (39%)
Gross profit 1,455 4,612 (68%)
Distribution expenses (566) (798) (29%)
Administrative expenses (713) (1,103) (35%)
Loss on disposal of
property, plant and equipment (5) (56) (91%)
Impairment of non-current assets (68) (3,668) (98%)
Other operating expenses (166) (215) (23%)
Results from operating activities (63) (1,228) (95%)
Finance income 1,321 106 1,146%
Finance expenses (1,987) (1,594) (25%)
Share of profits/(losses) and
impairment of associates 1,417 (3,302) -
Share of profits/(losses) and
impairment of jointly
controlled entities 151 (35) -
Profit/(loss) before taxation 839 (6,053) -
Income tax (18) (69) -
Net profit/(loss) for the year 821 (5,984) -
Attributable to:
Shareholders of the Company 821 (5,952) -
Non-controlling interests - (32) -
Net profit/(loss) for the year 821 (5,984) -
Earnings/(loss) per share
Basic and diluted earnings/(loss)
per share (US$) 0.06 (0.49) -
----------------------------------------------------------------------
Consolidated Statement of Comprehensive Income
Year ended 31 December 2009 2008
(US$ million)
----------------------------------------------------------------------
Net profit/(loss) for the year 821 (5,984)
Other comprehensive income / (loss)
Actuarial gains / (losses) on
post retirement benefit plans 29 (25)
Share of other comprehensive
income of associate 130 -
Foreign currency translation differences
for foreign operations (270) (3,623)
---------- ----------
(111) (3,648)
Total comprehensive income / (loss)
for the year 710 (9,632)
Attributable to:
Shareholders of the Company 710 (9,600)
Non-controlling interests - (32)
Total comprehensive income / (loss)
for the year 710 (9,632)
(*There was no tax effect relating to each component of other
comprehensive income/(loss).)
----------------------------------------------------------------------
Condensed Consolidated Statement of Cash Flows
Year ended 31 December 2009 2008 Change
(US$ million) year-on-year(%)
----------------------------------------------------------------------
Cash generated from operations
before interest
and income taxes paid 1,333 4,010 (67%)
Net cash generated from
operating activities 321 3,043 (89%)
Net cash used in
investing activities (301) (5,828) (95%)
Net cash (used in)/generated
from financing activities (486) 3,250 -
Cash and cash equivalents
at the end of year/period 215 685 (69%)
Net financial debt(16) 13,633 13,263 3%
----------------------------------------------------------------------
(1) Calculated as acquisition of property, plant and equipment,
acquisition of intangible assets and contributions in jointly
controlled entities.
(2) Adjusted EBITDA for any period is defined as results from
operating activities adjusted for amortization and depreciation,
impairment charges and loss on disposal of property, plant and
equipment.
(3) Does not include US$0.2 billion of contingent liabilities
under payment instruments, including, without limitation, undrawn
letters of credit.
(4) Source: RTS (Russian Trading System) closing price for the
last trading day of the year.
(5) Represents the average of the daily closing official London
Metals Exchange ("LME") prices for each period.
(6) The average alumina price per tonne provided in this table
is based on the daily closing spot prices of alumina FOB EU as
reported by Metal Bulletin each Wednesday and Friday.
(7) UC RUSAL assets also include two quartzite mines, one fluorite
mine, two coal mines, one nepheline syenite mine and two limestone
mines. The Company also has three aluminium powder metallurgy
plants, and produces cryolite, aluminium fluoride and cathodes.
(8) Total working capital is defined as inventories plus trade
and other receivables minus trade and other payables.
(9) For all years presented, net financial debt is calculated
as loans and borrowings less any cash and cash equivalents as
at the end of the year.
(10) Capex is defined as payment for the acquisition of property,
plant and equipment.
(11) Net Debt to Adjusted EBITDA differs from total net debt to
Covenant EBITDA for the purposes of the Company's debt
restructuring agreements.
(12) Source: CRU Group (unless otherwise stated).
(13) Bloomberg Consensus Net Income GAAP at 26/03/2010 - GMKN RU.
The actual results will be disclosed in RUSAL's 2009 annual report.
(14) Including chemicals and energy
(15) The Capex figures are based on the Company management accounts,
and differ from the IFRS figures as they do not include VAT and the
management account figures are the latest best estimate of the
capital costs required to complete the project (on 100% basis).
(16) Net financial debt is calculated as loans and borrowings less
any cash and cash equivalents as at the end of the year.
Forward-looking statements
This announcement contains statements about future events, projections, forecasts and expectations that are forward-looking statements. Any statement in this announcement that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These risk and uncertainties include those discussed or identified in the Prospectus. In addition, past performance of the UC RUSAL cannot be relied on as a guide to future performance. UC RUSAL makes no representation on the accuracy and completeness of any of the forward-looking statements, and, except as may be required by applicable law, assumes no obligations to supplement, amend, update or revise any such statements or any opinion expressed to reflect actual results, changes in assumptions or in UC RUSAL's expectations, or changes in factors affecting these statements. Accordingly, any reliance you place on such forward-looking statements will be at your sole risk.
All announcements and press releases published by United Company RUSAL Plc are available on its website under the links http://www.rusal.ru/en/stock_fillings.aspx and http://www.rusal.ru/en/press-center.aspx, respectively.
Contact:
RUSAL
Vera Kurochkina
+7 495 720 5170
Vera.Kurochkina@rusal.com
Investor Enquiries:
RUSAL
Catherine Shiang
+852 6391 6819
Catherine.Shiang@rusal.com
Topic: Earnings
Source: RUSAL
Sectors: Metals & Mining, Daily Finance
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