OREANDA-NEWS. August 30, 2011. UC RUSAL (SEHK: 486, Euronext: RUSAL/RUAL, MICEX: RUALR, RTS: RUAL), the world’s largest aluminium producer, announces its results for the six months ended 30 June 2011, reported the press-centre of RUSAL.    

Key highlights
 - Revenue increased by 18.8% to USD6,323 million in the first half of 2011, as compared to USD5,321 million for the first half of 2010, mainly due to increased prices and improved product mix.

- Adjusted EBITDA increased by 7.5% to USD1,425 million for the first half of 2011, as compared to USD1,325 million for the first half of 2010, representing Adjusted EBITDA margin of 22.5% keeping the best position in industry.

- Adjusted Net Profit[1], which is a measurement of the profitability of the Company’s core business and provides the investment community with a more relevant and fair indicator of the operational and financial performance for reported periods, increased by 24.5% to USD559 million, as compared to USD449 million for the first half of 2010.

- Net profit of USD1,085 million for the first half of 2011 decreased by 20.5% as compared to net profit of USD1,365 million for the first half of 2010, due to certain non-cash items, mainly increase in the effective interest charges on restructured debt and decrease in net share in results of Norilsk Nickel.

- Total aluminium output amounted to 2,023 thousand tonnes in the first half of 2011, representing an increase of approximately 1%, as compared to that of the first half of 2010.

- Record high share of value-added products output demonstrating 37% of total aluminium production in the first six months of 2011 in comparison with 29% for the first half of 2010.

- Alumina output totalled 4,025 thousand tonnes in the first half of 2011, representing an increase of approximately 8%, as compared to that of the first half of 2010.

- Bauxite production totalled 6,617 thousand tonnes in the first half of 2011, representing an increase of approximately 23%, as compared to that of the first half of 2010.

- In the first six months ended 30 June 2011, the Company reduced its debt under its restructuring agreements by USD1.67 billion by way of repayment out of the proceeds from the Russian Ruble denominated bonds issue in March and April 2011 and more than USD0.6 billion out of cash flow of the Company.

- Banks mandated to arrange up to USD4.75 billion finance facility, which may potentially be increased to up to USD5 billion upon agreement with the lenders providing the facility to the Company.

- The maturity of the USD4.58 billion Sberbank facility (the debt initially owed to VEB and refinanced by Sberbank) was agreed to be extended from December 2013 to August 2016. Simultaneously, the interest rate was agreed to be reduced to one-year LIBOR+4.5% and the VEB guarantee was terminated.
 
Commenting on the interim results, Oleg Deripaska, CEO of RUSAL said:
 
“The first half of 2011 has been characterised by challenging market conditions across the whole metals and mining industry. However, UC RUSAL’s focus on raising the efficiency of the Company’s business with good cost pressure management, has resulted in the Company being the most efficient aluminium producer worldwide, with an adjusted EBITDA margin of 22.5%. RUSAL has delivered a solid set of operational results, with revenues and all the major financial indicators increasing year on year. It is particularly satisfying to report that Adjusted Net Profit, which indicates the profitability of UC RUSAL core business, increased by 24.5% in reporting period.
 
“We continue to pursue our strategy of increasing the share of value-added products within our overall production profile by modernising major production facilities at the Siberian aluminium smelters and refocusing smelters located in the European part of Russia to manufacture unique products tailored for the specific needs of our customers. As a result, the proportion of alloy production in the total production volume increased to 37% in the first half of 2011. The company also drives forward construction at the Boguchansky and Taishet smelters which, once completed, will increase our annual attributable capacity by over 1.0 million tonnes of aluminium per annum with minimum operating expenses.
 
“The last six months have seen the Group make significant strides in refinancing its debt ahead of schedule with new facilities agreed with a syndicate of leading international and Russian lenders. These new facilities will provide UC RUSAL with greater operational and financial flexibility as we look to meet the continuing aluminium consumption demand in both established and fast-growing emerging markets.
 
“While the volatility across the sector and in the global economy is likely to persist in the mid-term, UC RUSAL’s strong fundamentals and leading position in the metals and mining industry will allow the Company to continue delivering value and growth for all stakeholders.”