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| Friday, 12 November 2010, 18:30 HKT/SGT | |
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Source: RUSAL | |
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MOSCOW, Nov 12, 2010 - (ACN Newswire) - UC RUSAL Plc (SEHK: 486, EuroNext: RUSAL/RUAL), the world's largest aluminium producer, announces its results for the nine months ended 30 September 2010.
Key highlights:
-- Net profit of USD1,420 million for the nine months ended 30 September 2010 compared to net loss of USD826 million for the nine months ended 30 September 2009.
-- Revenue increased by 36.6% to USD8,029 million for the nine months ended 30 September 2010 as compared to USD5,876 million for the nine months ended 30 September 2009 due to higher aluminium prices.
-- Gain from operating activities of USD1,467 million in the nine months ended 30 September 2010, as compared to a loss from operating activities of USD161 million in the nine months ended 30 September 2009, representing operating margins of 18.3% and negative 2.7%, respectively.
-- Total aluminium output amounted to 3,034 thousand tonnes for the nine months ended 30 September 2010, an increase of 3% as compared to the nine months ended 30 September 2009.
-- Alumina output totaled 5,758 thousand tonnes for the nine months ended 30 September 2010, an increase of 7% as compared to the nine months ended 30 September 2009.
-- Bauxite production totaled 8.7 million tonnes for the nine months ended 30 September 2010 and decreased by 1% as compared to the nine months ended 30 September 2009.
-- Aluminium foil and packaging production volume increased by 22% to 60.2 thousand tonnes for the nine months ended 30 September 2010 compared to 49.3 thousand tonnes for the nine months ended 30 September 2009.
-- Investments in development of existing facilities and construction of new assets amounted to USD623 million.
-- Adjusted EBITDA increased to USD1,889 million for the nine months ended 30 September 2010 compared to USD328 million for the same period in 2009.
-- The refinancing of VEB debt with a new USD4.58 billion credit facility from Sberbank - the final step in the restructuring of the loan portfolio. The new loan, which has an interest rate of LIBOR +5%, matures on 7 December 2013 and may be renewed for a further one and a half years.
-- With effect from 10 September 2010, the interest margin payable by the Company on its debt owed to international lenders has decreased from 5.5% to 4.5% as the Total Net Debt to Covenant EBITDA ratio has dropped. The interest margin has reduced by 36% as compared to the December 2009 margin of 7%.
-- In the third quarter of 2010, the Company has made debt repayments in the amount of USD309 million to its lenders (other than VEB) using dividends received by the Company from Norilsk Nickel.
-- In compliance with its obligations under the International Override Agreement, as at 30 September 2010, the Company had reduced the Total Net debt (excluding VEB and Onexim) by USD2.4 billion. As a result, the Company is ahead of its 2010 debt reduction targets by 73%. In addition, the Company's debt reduction targets for 2011 have already been met by 81%.
-- The Supervisory Board of VEB has approved the offering to the Company of a financing package amounting to RUR50 billion (about USD1.7 billion) for UC RUSAL and RusHydro to complete the construction of the Boguchanskoye Energy and Metals Complex.
-- Market value of the Company's investment in Norilsk Nickel as at end of September 2010 increased by 21.1% as compared to the value of that investment at the end of 2009. As of 30 September 2010, the market capitalisation of the investment exceeded USD8.1 billion .
Commenting on the results of the first nine months of 2010, Oleg Deripaska, CEO of UC RUSAL said:
"We have consolidated our success in reducing costs and improving production efficiency, which has allowed us, in spite of the rising costs of raw materials and energy, to achieve one of the most competitive production costs within the aluminium industry. This enabled us to meet the growing demand for aluminium by continuing to increase production volumes at existing facilities, as well as at the modernized Irkutsk aluminium smelter, where new modern highly efficient equipment was launched. Our aluminium production output grew by 78,000 tonnes over the period.
"These much improved results show that UC RUSAL has entered a new growth phase. RUSAL's strong financial position creates a solid platform for the Company's further development. EBITDA substantially increased over the first nine months of 2010, which led to in June and then in September a reduction in the interest rates on international loans from 7% to 4.5%. The group is well ahead of its debt repayment targets and has successfully completed its comprehensive programme to restructure its loan portfolio. The final step in this process was the refinancing of the USD4.58 billion VEB loan with a new credit facility from Sberbank, which matures in December 2013. The original loan was drawn in 2008 for the acquisition of a 25% stake in Norilsk Nickel, which remains a strategic investment for UC RUSAL. The market value of our investment in Norilsk Nickel remains significantly undervalued. We believe that the market capitalisation of Norilsk Nickel can easily double and, as one of the key shareholders of Norilsk Nickel, we will continue to advance the positive agenda for change that will enhance value for all shareholders.
"Several factors point to encouraging prospects for the aluminium market: the revival of the domestic market, increased economic activity in Germany, South America and Asia, spot premiums reaching an all-time high, partly due to China becoming a net importer of aluminium, as well as the projected reduction in inventories by less than 4-5% by the end of the year. Our action plan aimed at supporting Russian manufacturers of aluminium-consuming products has enabled us to increase sales in Russia by almost 50%. The letter of intent we have signed with China North Industries Corporation (NORINCO) to create a joint sales subsidiary in China and the offering of project finance approved by the Supervisory Board of VEB for the completion of the Boguchanskoye Energy and Metals Complex, a key growth project for the Company, further strengthen RUSAL's leading position in improving market conditions."
Please download the full UC Rusal earnings release at the HKEx: http://www.hkexnews.hk/listedco/listconews/sehk/20101112/LTN20101112037.pdf
Contact:
RUSAL
Vera Kurochkina
+7 495 720 5170
Vera.Kurochkina@rusal.com
Topic: Earnings
Source: RUSAL
Sectors: Metals & Mining, Daily Finance
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From the Asia Corporate News Network
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