Higher alimunium prices took Rusal to profit
The Russian group Rusal, which is the largest aluminum producer in the world, announced twice larger than expected profit for the second quarter after commodity prices rose this year due to increased demand from rapidly growing Asian economies. For best quarterly results contribute and increase the market value of the share of Rusal in Russia’s largest mining company Norilsk Nickel. Rusal net profit for the three months ended June 30 amounted to 1.02 billion dollars, or 7 cents a share, compared with a loss of 230 million dollars, or 2 cents a share, a year ago. Market analysts predicted a smaller net profit of 393 million dollars. Profit for first half of the year amounted to 1.27 billion dollars compared with a loss of 868 million dollars a year ago. Moscow-based company that is controlled by Russian billionaire Oleg Deripaska, increase its production this year after aluminum rose by more than 50%. Its price has risen to an average of 2,130 dollars per tonne on the London Metal Exchange in the first half of this year from 1,422 dollars per tonne a year ago, according to Rusal. According to company management demand of aluminum in Russia jumped 50 percent this year and another 30% next.
Rusal revenues of the second quarter increased by 51% yoy to $ 3 billion. Gross profit margin increased to 34% in the first half to 8 percent a year ago. Market valuation of 25-percent share of Norilsk Nickel company reached 7.2 billion dollars at the end of June compared with 4.5 billion dollars a year ago. Rusal shares rose more than 4 percent to 7.97 Hong Kong dollars at today’s trading session in Hong Kong where the company foliage this year.
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