Rusal swings to profit in Q2 as aluminium prices soar

UC Rusal posted its first quarterly profit in over a year in the April-June 2014 period as earnings were boosted by rising aluminium prices and premiums.

The world’s largest aluminium producer posted a profit of $116 million in the quarter, the first time since the January-March 2013 period, it said on Wednesday August 27.  Aluminium companies are benefitting from rising aluminium prices and record-high premiums. Rusal’s adjusted earnings before interest, taxes, depreciation and ammortisation (Ebitda) in the second quarter of 2014 was $220 million, up 26.4% year-on-year. “The Ebitda increase seems driven by lower costs, reduction in power tariffs and a depreciation in rouble. It's actually softer than consensus and their guidance of an Ebitda in excess of $600 million in the second half is also shy of expectations of over $750 million,” an analyst who follows the miner closely said.   Ebitda margin improved to...

Published

Deepali Sharma

August 27, 2014

05:05 GMT

Singapore