MOSCOW, May 12 (RIA Novosti) - RusAl, the world's largest aluminum company, saw first quarter IFRS net profits jump to $746 million from $247 million in the same period last year, RusAl said on Thursday.
RusAl's net profit was above a consensus forecast of analysts polled by RIA Novosti who expected the aluminum giant's net profit to be just $500.2 million.
The company's revenue grew by 28.4 percent to $2.993 billion as a result of higher aluminum and alumina market prices, as well as improved product mix and realized premiums over London Metals Exchange prices, RusAl said in a statement.
The sales of primary aluminum and alloys grew by 29.1 percent in January-March 2011 to $2.508 billion.
Revenue from alumina sales rose 29.5 percent to $167 million and revenue from the sale of aluminum foil products grew to $73 million from $59 million year-on-year, while other sales increased by 21.9 percent to $245 million.
RusAl's net debt amounted to $11.382 billion as of March 31 this year. In the first three months of 2011, RusAl reduced its obligations under the debt restructuring agreements by $860 million, including the repayment of $530 million out of the proceeds from the Russian ruble-denominated bonds issue in March 2011.
Adjusted EBITDA grew by 40.6 percent to $682 million mainly owing to higher selling prices and increased sales.
"On the one hand, high inflation has had a negative impact on all aluminum producers, with UC RusAl coming under particular pressure due to the sharp rise in energy tariffs in Russia in the first quarter of 2011. On the other hand, the increasing demand for aluminum, supported by a return to pre-crisis rates of growth of the global economy, has seen a steady growth of aluminum prices, which in the first quarter exceeded our expectations," RusAl CEO and owner Oleg Deripaska was quoted in the statement.
"We have revised our forecast and now expect that the average price for aluminum in 2011 will be above $2,700 per ton. RusAl is well positioned to take advantage of the strengthening price of aluminum by increasing production and launching new facilities, such as the Boguchansky and Taishet aluminum smelters," he said.
RusAl expects strong demand for aluminum to continue in 2011 with a 13 percent growth to 46 million tons. The emerging markets of China, Brazil, India and Russia are expected to be driving the growth of aluminum consumption in 2011, the firm said.
