Netearnings under Russian accounting standards in the first half of 2016 atPJSC ALROSA, theworld's biggest diamond miner, surged year on year after the group deliveredmuch stronger sales than expected in the second quarter, which is traditionallya weak period for diamond sellers.
Netincome rose to 82.75 billion Russian rubles, from 37.58 billion rubles duringthe first half of 2015, while revenue in the same period of 2016 rose to 146.93billion rubles from 111.52 billion rubles, according to the results reportpublished July 25.
Whilerevenues charged ahead, costs rose by a comparatively modest amount to 45.98billion rubles from 44.50 billion rubles.
Thecompany produced 16.9 million carats of diamonds in the first half of this year— down 6% compared to the same period of 2015, according to a recent .
BothAlrosa and rival De BeersSA have been cutting output this year in a bid to reduce thecompanies' stockpiles of unsold stones and to boost diamond prices. The diamondmarket fell approximately 18% in 2015 amid a sector downturn driven bylackluster jewelry sales in the U.S. and China as well as restrained demandfrom cutters and polishers in India due to a tightening of credit.
Theresults under Russian accounting standards are unconsolidated and do notinclude contributions from some of the company's operating subsidiaries,including Alrosa-Nyurba, Severalmaz and Almazy Anabara.
Thecompany is due to report its half-year results under international financialreporting standards Aug. 29.
As of July 25, US$1 wasequivalent to 65.31 Russian rubles.