In April, the London Metallic Alternate banned Russian aluminum, copper and nickel produced from April 13 to adjust to new US and UK sanctions.
“Uncertainty within the international financial system and weak demand, worsening market situations and new restrictions imposed on Russian metallic traded in international markets, primarily premium ones, in addition to weak international costs continued to place stress on the corporate’s operational and monetary efficiency”, Rusal stated in a press release.
Rusal’s first-half gross sales decreased by 2.9% to 1.879 million metric tons, whereas manufacturing rose by 2.3% to 1.957 million tons because the Taishet plant has progressively elevated output.
Nonetheless, Rusal stated its deliveries to China touched a document excessive, and the Russian market reached its pre-Ukraine battle quantity.
China has turned the corporate’s largest market after Russia, Rusal reported final 12 months.
Asia accounted for 42% of Rusal’s income up from 33% within the first half of 2023 and 38.4% in 2023.
The typical worth of aluminum on the LME reached $2,360 per ton within the first half of 2024, whereas the value of Rusal’s metallic fell by 2.2% to $2,447 per ton following a decreased premium.
Mixed with decrease gross sales, that meant Rusal’s income fell by 4.2% to $5.695 billion within the first half of 2024, whereas a 15.9% fall in prices to $4,385 billion, largely due to cheaper uncooked supplies, finally noticed earnings enhance.
The price of buying alumina fell by 5% to $992 million, Rusal stated.
It has sought to cut back its reliance on imported materials after shedding provides from Ukraine and Australia.
Final 12 months, it purchased a 30% stake in a Chinese language alumina refinery and plans to construct an alumina plant in Russia.
Rusal’s CEO Evgenii Nikitin stated in a press release the corporate was additional engaged on “materials self-reliance” with a pilot operation for a second furnace on the Taishet anode plant, in Russia, was increasing bauxite manufacturing in Guinea, and looking for new deposits elsewhere.
Adjusted earnings earlier than curiosity, tax, depreciation and amortization (EBITDA) jumped by 171% to $786 million and adjusted web revenue was $446 million in contrast with $315 million a 12 months in the past.
(By Anastasia Lyrchikova, Sameer Manekar and Himanshi Akhand; Modifying by Barbara Lewis)