OREANDA-NEWS. UC RUSAL (SEHK: 486, Euronext: RUSAL/RUAL, Moscow Exchange: RUALR), a leading global aluminium producer, announces its operating results for the fourth quarter and full year 2014.

Key highlights

• Total aluminium production amounted to 3,601 thousand tonnes in FY14 (-7% YoY) and 915 thousand tonnes in 4Q14 (+1% QoQ).

• Share of value-added products continued to grow and reached a record 45% of total aluminium production in 2014 in comparison with 42% for the previous year.

• RUSAL alumina output totaled 7,253 thousand tonnes in FY14 (-1% YoY) and remained flat at the level of 1,818 thousand tonnes in 4Q14.

• RUSAL bauxite production amounted to 12,108 thousand tonnes in FY14 (+2% YoY) and 2,932 thousand tonnes in 4Q14 (-11% QoQ). The management remains focused on further increases of an efficient upstream vertical integration.

• The average aluminium realized price was USD2,219/tonne (+3% YoY) in FY14. The average realized price kept positive momentum in 4Q14 growing 5% QoQ.

• While RUSAL expects stable aluminium production volumes and favorable pricing environment in 2015, the Company does not plan to restart the aluminium smelters idled in 2013/2014 due to the current market environment so to maintain production discipline.

Commenting on the operating results, Vladislav Soloviev, CEO of RUSAL said:

"The period under review represented a marked turnaround in the aluminium market. Thanks to production cuts as well as a continued increase in demand, the 2014 ex-China market ended in deficit, supporting the LME price and also regional premiums.

Throughout 2014, RUSAL has maintained its disciplined approach to production and focus on highly marginal value added aluminium products which we intend to replicate in 2015. Looking forward, we estimate that an increased usage of aluminium across a wide range of sectors will mean that demand for the metal will grow by 6.5% in 2015, while the ex-China market deficit will remain significant."