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| Monday, 29 August 2011, 10:00 HKT/SGT | |
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Source: RUSAL | |
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| Topline Growth Outperforms the Market |
MOSCOW, Aug 29, 2011 - (ACN Newswire) - UC RUSAL (SEHK: 486, Euronext: RUSAL/RUAL, MICEX: RUALR, RTS: RUAL), the world's largest aluminium producer, announces its results for the six months ended 30 June 2011.
-- Revenue increased by 18.8% to USD6,323 million in the first half of 2011, as compared to USD5,321 million for the first half of 2010, mainly due to increased prices and improved product mix.
-- Adjusted EBITDA increased by 7.5% to USD1,425 million for the first half of 2011, as compared to USD1,325 million for the first half of 2010, representing Adjusted EBITDA margin of 22.5% keeping the best position in industry.
-- Adjusted Net Profit , which is a measurement of the profitability of the Company's core business and provides the investment community with a more relevant and fair indicator of the operational and financial performance for reported periods, increased by 24.5% to USD559 million, as compared to USD449 million for the first half of 2010.
-- Net profit of USD1,085 million for the first half of 2011 decreased by 20.5% as compared to net profit of USD1,365 million for the first half of 2010, due to certain non-cash items, mainly increase in the effective interest charges on restructured debt and decrease in net share in results of Norilsk Nickel.
-- Total aluminium output amounted to 2,023 thousand tonnes in the first half of 2011, representing an increase of approximately 1%, as compared to that of the first half of 2010.
-- Record high share of value-added products output demonstrating 37% of total aluminium production in the first six months of 2011 in comparison with 29% for the first half of 2010.
-- Alumina output totalled 4,025 thousand tonnes in the first half of 2011, representing an increase of approximately 8%, as compared to that of the first half of 2010.
-- Bauxite production totalled 6,617 thousand tonnes in the first half of 2011, representing an increase of approximately 23%, as compared to that of the first half of 2010.
-- In the first six months ended 30 June 2011, the Company reduced its debt under its restructuring agreements by USD1.67 billion by way of repayment out of the proceeds from the Russian Ruble denominated bonds issue in March and April 2011 and more than USD0.6 billion out of cash flow of the Company.
-- Banks mandated to arrange up to USD4.75 billion finance facility, which may potentially be increased to up to USD5 billion upon agreement with the lenders providing the facility to the Company.
-- The maturity of the USD4.58 billion Sberbank facility (the debt initially owed to VEB and refinanced by Sberbank) was agreed to be extended from December 2013 to August 2016. Simultaneously, the interest rate was agreed to be reduced to one-year LIBOR+4.5% and the VEB guarantee was terminated.
Commenting on the interim results, Oleg Deripaska, CEO of RUSAL said: "The first half of 2011 has been characterised by challenging market conditions across the whole metals and mining industry. However, UC RUSAL's focus on raising the efficiency of the Company's business with good cost pressure management, has resulted in the Company being the most efficient aluminium producer worldwide, with an adjusted EBITDA margin of 22.5%. RUSAL has delivered a solid set of operational results, with revenues and all the major financial indicators increasing year on year. It is particularly satisfying to report that Adjusted Net Profit, which indicates the profitability of UC RUSAL core business, increased by 24.5% in reporting period.
"We continue to pursue our strategy of increasing the share of value-added products within our overall production profile by modernising major production facilities at the Siberian aluminium smelters and refocusing smelters located in the European part of Russia to manufacture unique products tailored for the specific needs of our customers. As a result, the proportion of alloy production in the total production volume increased to 37% in the first half of 2011. The company also drives forward construction at the Boguchansky and Taishet smelters which, once completed, will increase our annual attributable capacity by over 1.0 million tonnes of aluminium per annum with minimum operating expenses.
"The last six months have seen the Group make significant strides in refinancing its debt ahead of schedule with new facilities agreed with a syndicate of leading international and Russian lenders. These new facilities will provide UC RUSAL with greater operational and financial flexibility as we look to meet the continuing aluminium consumption demand in both established and fast-growing emerging markets.
"While the volatility across the sector and in the global economy is likely to persist in the mid-term, UC RUSAL's strong fundamentals and leading position in the metals and mining industry will allow the Company to continue delivering value and growth for all stakeholders."
Business Review:
- Aluminium production -
UC RUSAL's total aluminium output amounted to 2,023 thousand tonnes in the six months ended 30 June 2011, as compared to 1,996 thousand tonnes for the six months ended 30 June 2010.
The increase in volumes in aluminium output in the six months ended 30 June 2011 was mostly due to increased production at the Krasnoyarsk, Novokuznetsk and Irkutsk aluminium smelters in Siberia and Kubal in Sweden.
- Alumina production -
Total attributable alumina output for UC RUSAL amounted to 4,025 thousand tonnes for the six months ended 30 June 2011, as compared to 3,712 thousand tonnes for the six months ended 30 June 2010.
The increase in the volume of alumina production for the first six months of 2011 as compared to that for the six months ended 30 June 2010 was due to increased production at Windalco Ewarton Plant in Jamaica.
- Bauxite production -
The Company's aggregate attributable bauxite production was 6,617 thousand tonnes for the six months ended 30 June 2011, as compared to 5,391 thousand tonnes for the six months ended 30 June 2010, representing an increase of 22.8%.
The increase in the volume of bauxite production for the first six months of 2011 as compared to that of the corresponding period in 2010 was mostly due to increased production at Windalco Ewarton Plant in Jamaica, BCGI in Guyana and North Urals in Russia.
Aluminium industry 2011 outlook:
UC RUSAL continues to see strengthening demand for aluminium through increased penetration in the consumer markets as well as further price support based on cost inflation in aluminium inputs, including raw materials (alumina, pitch and tar), power (coal and oil) and labour, which are significant cost items in the aluminium production process.
Looking at the key consumer segments, automotive remains a key driver of aluminium demand growth. Despite the decline of vehicle production in the US in the second quarter of 2011, an 8% growth in North America is expected for the full year. Similarly, increasing car production in Europe is forecasted by UC RUSAL at 5% for 2011, with the highest growth expected in Germany (9.5%) and Turkey (10%), according to UC RUSAL internal projections. Heavy trucks and trailers applications are maintaining record growth rates in North America and Europe. UC RUSAL believes that demand from other consuming segments, including aviation, electronics and packaging remains strong.
The Company expects strong demand for aluminium to continue in 2011 with a 13% growth to 46 million tonnes expected to be driven by the emerging markets of China, Brazil, India and Russia. Japanese consumption is expected to recover in the fourth quarter of 2011 and be led by the automotive and construction sectors, according to UC RUSAL internal projections.
The Company expects production of primary aluminium to grow by approximately 9% to 46 million tonnes in 2011. Most of the incremental production is likely to come from China and the Middle East.
* The full text of the 2011 Interim Report has been released in Hong Kong through a regulatory announcement published on the website of The Stock Exchange of Hong Kong Limited ( www.hkexnews.hk ) and has been filed with the French Autorite des marches financiers and released in France in accordance with French law and regulations on the date hereof. The interim results announcement and the 2011 Interim Report are available for viewing on the Company's website at www.rusal.ru and the website of The Stock Exchange of Hong Kong Limited ( www.hkexnews.hk ).
Forward-looking statements: This press-release 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 for UC RUSAL. In addition, past performance of 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.
Contact:
Vera Kurochkina
+7-495-720-51-70
vera.kurochkina@rusal.com
Topic: Earnings
Source: RUSAL
Sectors: Metals & Mining
https://www.acnnewswire.com
From the Asia Corporate News Network
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