Russian diamond producer PJSC Alrosa's net profit in the second quarter dropped 47% year over year to 13.4 billion Russian rubles due to lower revenue and shrinking margins.
Revenue in the quarter declined 21% year over year to 57.4 billion rubles as diamond sales slipped 8% to 8.3 million carats. EBITDA fell 39% year over year to 25.1 billion rubles, mainly reflecting lower sales.
The company increased its full-year diamond production forecast to 38.5 million carats from 38 million carats and said it expects sales of 32 million to 33 million carats for the full year.
Capital expenditure for the year was revised to 23.4 billion rubles, down from 28 billion rubles, according to an Aug. 19 release.
In the first half, Alrosa's net profit slumped 36% year over year to 37.5 billion rubles, while revenue dropped 24% to 127.9 billion rubles on the back of a 16% decline in sales volumes to 18.9 million carats.
Deputy CEO Alexey Philippovskiy said the low leverage at the end of the second quarter will allow the management to submit a proposal for a dividend payout equal to 100% of the company's first-half free cash flow of 28.3 billion rubles.
The company recently signed a joint venture agreement with Zimbabwe Consolidated Diamond Co. to develop diamond deposits in the country.
As of Aug. 19, US$1 was equivalent to 66.82 Russian rubles.
