OREANDA-NEWS. May 18, 2010. UC RUSAL plc (SEHK: 486, EuroNext: RUSAL/RUAL), the world’s largest aluminium producer, announces its results for the first quarter 2010 ended 31 March 2010.

Key highlights

•         Net profit of USD247 million for the first quarter of 2010 compared to net loss of USD638 million for the first quarter of 2009.

•         Revenue increased by 31% to USD2,331 million in the first quarter of 2010 as compared to the first quarter of 2009 due to higher aluminium prices.

•         Gain from operating activities of USD366 million in the first quarter of 2010, as compared to a loss from operating activities of USD247 million in the first quarter 2009, representing operating margin of 16% and negative 14%, respectively.

•         Total aluminium output amounted to 973,000 tonnes in the first quarter of 2010, a decrease of 4% as compared to the first quarter of 2009.

•         Alumina output totaled 1.8 million tonnes in the first quarter of 2010, a decrease of 14% as compared to the first quarter of 2009.

•         Bauxite production decreased by 15% to 2.6 million tonnes in the first quarter of 2010 as compared to the first quarter of 2009.

•         Aluminium foil and packaging production volume increased by 57% to 19,200 tonnes in the first quarter of 2010 compared to 12,200 tonnes in the first quarter of 2009.

•         Investments1 in the development of existing facilities and construction of new assets amounted to USD338 million.

•         Adjusted EBITDA2 increased to USD485 million for the first quarter of 2010 compared to negative USD78 million for the first quarter of 2009.

•         Market value of the Company’s investment in OJSC MMC Norilsk Nickel (“Norilsk Nickel”) increased by 32% in the first quarter of 2010. The market capitalisation of the investment exceeded USD8.8 billion as of 31 March 20103.

•         Successful listing on The Hong Kong Stock Exchange Limited and Euronext Paris stock exchanges (the “IPO” or “Global Offering”) completed on 27 January 2010.

Commenting on the first quarter results announcement, Oleg Deripaska, CEO of UC RUSAL said:

“Today we are announcing a significant turnaround in UC RUSAL’s fortunes. We delivered a positive outcome in the first quarter of 2010, with a 31% increase in revenues and a swing into positive territory for EBITDA and net profit. UC RUSAL has returned to profit, demonstrating a strong financial performance and is well placed for the future, with a planned gradual restoration of production volumes. We have reduced debt through our successful IPO and our strategic stake in Norilsk Nickel has shown a meaningful increase in value. Market conditions continue to improve, with the aluminium price benefiting from improving US demand and rising premiums, a stable picture in Asia and a continued decrease in LME stocks.

“Having regained its financial and operational stability, UC RUSAL plans to continue its sustainable development by introducing new, efficient aluminium and energy production capacities, reducing operating costs, diminishing our debt and further expanding our presence in Asia, the most promising market for aluminium. As the company has entered a new stage of maturity through its IPO, UC RUSAL is focusing its efforts on achieving the ultimate strategic objective of further enhancing shareholder value throughout 2010 and beyond.”