“RUSAL” in 2015, increased EBITDA under IFRS 33%, slightly below forecast

“RUSAL” in 2015, increased EBITDA under IFRS 33%, slightly below forecast


The largest Russian aluminum company increased EBITDA under IFRS to 2,015 billion. Revenue decreased by 7.2% to 8,680 billion.

MOSCOW, 9 Mar. OK “RUSAL” following the results of 2015 increased adjusted EBITDA under IFRS of 33.1% compared to 2014 — up to 2,015 billion dollars, follows from the message of the company.

The result was slightly below the consensus forecast, following the results of poll of analysts expecting EBITDA at the level of 2,024 billion.

Adjusted EBITDA margin in 2015 increased to 23.2% from 16.2%.

The company’s revenue declined by 7.2% to 8,680 billion, which was slightly above analysts ‘ expectations, prognozirovanii figure at 8,649 billion. The decrease in total revenues due primarily to lower revenue from sales of primary aluminium and alloys.

Total cost of sales decreased by 14% to 6,215 billion in 2015, primarily due to the continued depreciation of the ruble and the Ukrainian hryvnia against the U.S. dollar.

Net profit of RUSAL during the reporting period amounted to 558 million dollars compared to 91 million loss a year earlier, adjusted net profit amounted to 671 million dollars (in 2014 — $ 17 million), recurring net profit has increased almost in 2,3 times, to 1,097 billion $ 486 million in the previous year.

The company’s net debt in the reporting period declined by 5.3% and on December 31, 2015 $ 8,372 billion. Total capital expenditures in the segment of “Aluminum” grew by almost 18%, to 303 million dollars in the segment of “Alumina” — decreased by 16% to 164 million dollars.

Fourth quarter

In the fourth quarter of 2015 the company’s EBITDA decreased compared to the same period in 2014, 2.1 times — up to 306 million dollars, revenue decreased by 25.6% to 1,857 billion.

Net loss increased by 2.6 times and amounted to 267 million dollars, adjusted net profit fell seven times, to $ 55 million. Normalized net loss was $ 40 million versus $ 276 million profit for the fourth quarter of 2014.

The average sale price of aluminum in the last quarter of 2015 decreased by 28.5% to $ 1729 per ton compared to $ 2419 in the same period of 2014.

The cost per tonne in the aluminium segment decreased by 15.6% to $ 1410 compared to $ 1671 for the fourth quarter of 2014.

Forecast

RUSAL expects global aluminum demand in 2016 will grow by 5.7% to reach 59.6 million tonnes as a result of consumption growth in North America, Europe and Asia. The demand for aluminium in China in 2016 will grow by 7% to 31 million tons.

From the point of view, it is projected that aluminium production in China will grow at its slowest pace in the last five years the growth will be 4.8% in 2016, compared with the average for the five years by 12% and 9.6% in 2015.

At the current full price of aluminum is about five million tons of aluminum capacity outside China are losing money. It is projected that aluminium production outside of China will be reduced by 100 thousand tons in 2016 compared to 2015 year – on-year to 26.2 million tons. As a result, the gap in the market outside of China will increase to 2.4 million tons this year from 1.2 million tonnes in 2015.

RUSAL expects that global primary aluminum market in 2016 will be included in the state deficit, which will amount to 1.2 million tons compared to a surplus of 0.6 million tons in 2015.