An Alrosa press release said the company's profits decreased by a factor of 3.8 in January-March this year, from 7.061 billion rubles (about $275 million) in the final quarter of 2006.
Alrosa, which accounts for 97% of Russia's raw diamond production and for 25% of global output, saw its net profits go up 3.2% in 2006, to 15.579 billion rubles ($599 million). The state-owned company and its subsidiary Nyurba then produced $2.3 billion worth of diamonds, surpassing the target level by 2.4%.
Russia's federal government, the largest single owner of Alrosa, is set to increase its current 37% stake in the world's second-largest rough diamond producer to a controlling interest.
The government of Sakha (Yakutia), the Russian Far Eastern republic where most of the company's operations are based, owns 32%. Eight percent belongs to Yakutia's provinces, and the remaining 23% is held by the company's employees.
