United Co. Rusal PLC said May 10 that its net profit in the first quarter nearly tripled to US$544 million, representing a rise of 190.9% year over year, with revenue rising 19.5% to US$2.74 billion in the period ended March 31.
Rusal's results for the period were before it was added to a list of Russian companies and individuals sanctioned by the U.S. Treasury Department for profiting from Russia's "malign activity around the globe" in early April.
Rusal said that due to the sanctions, any of the company's previous forecasts for this year have become unreliable and may be irrelevant.
The Russian aluminum producer's first-quarter adjusted net profit was 20.5% higher yearly at US$317 million. The figure takes into account the net effects of the company's investment in PJSC Norilsk Nickel Co., derivative financial instruments and noncurrent assets impairment.
A year ago, Rusal posted a net profit of US$187 million, revenue of US$2.30 billion and adjusted net profit of US$263 million.
Total cost of sales in the period increased 19.8% to US$2.02 billion, primarily due to a significant growth in electricity prices, railway transportation tariffs and other raw material costs as well as a stronger Russian ruble.
Finance income increased 143.3% to US$73 million, primarily as a result of the net profit from the change in fair value of derivative financial instruments for the period, in contrast to a significant net loss on this item in the comparable year-ago quarter. Finance expenses fell 69.2% yearly to US$129 million.
CapEx in the quarter grew to US$220 million from US$129 million a year ago.
Aluminum and alumina production slightly recovered in the quarter, with output up 2.3% and 0.2%, respectively, to 931,000 tonnes and 1.9 million tonnes. Bauxite production posted a yearly increase of 3.2% to 3.0 million tonnes.
Sales of primary aluminum and alloys slipped 2.0% yearly to 965,000 tonnes at a 12.4%-higher average alumina price of US$382/tonne.
The aluminum producer said its primary focus remains on maintaining its operations and protecting the interests of all of its creditors, investors and shareholders in the wake of the sanctions.
