RUSAL’s 2018 net profit up 39 % despite OFAC sanctions

RUSAL, a leading global aluminium producer, announced its results for the year ended 31 December 2018.

Total revenue increased by 3.1 % to USD 10,280 million in 2018, as compared to USD 9,969 million in 2017. The company achieved net profit of USD 1.698 billion, up 39 % from USD 1.222 billion in 2017. The recurring net profit stood at USD 1.695 billion, as compared to USD 1.573 billion in 2017.

Evgenii Nikitin, CEO of RUSAL, said: “Despite the OFAC Sanctions, RUSAL’s robust full year results demonstrated skillful crisis management alongside the ability to adapt to a new operations’ environment. It maintained its strong market position through its high managerial competence and operational flexibility.

In 2018, aluminium production totaled 3,753,000 t which is a 1.2 % increase compared to the prior year. Total production dynamics remained largely stable with capacity utilization reaching 96 %.” Revenue from sales of primary aluminium and alloys was almost flat in 2018 compared to 2017. Revenue from sales of alumina increased 26.8 % YoY to USD 975 million in 2018. Revenue from sales of foil and other aluminium products increased by USD 23 million, or by 7.1 %, to USD 346 million in 2018, as compared to USD 323 million in 2017. This was due to the growth in sales of other aluminium products (aluminium wheels). Revenue from other sales, including sales of other products, bauxite and energy services increased by 20.4 % to USD 666 million for the year ended 31 December 2018.

“Looking ahead into 2019 and the forthcoming years, we expect aluminium demand to recover after the trade wars and supply shocks of late 2018. Alongside forecasting markets outside China to be in heavy deficit in 2019, we are confident that RUSAL is fully capable to leverage this trend.” RUSAL expects global aluminium demand to rise by 3.7 % YoY in 2019 to 68 million t vs a 3.6 % growth in 2018 YoY at 65.6 million t.

AlCircle .com, March 7, 2019