Rusal's EBITDA grows 15% to $475 mln in Q1, just short of forecast
MOSCOW. May 12 (Interfax) - UC Rusal reported EBITDA up 15% to $475 million in the first quarter of 2017.
Analysts polled by Interfax expected the company's EBITDA to be $484 million in the quarter.
Rusal's EBITDA margin rose to 20.7% in the first quarter from 20.3% in the previous quarter.
The company's adjusted net profit and recurring net profit grew to $263 million and $434 million respectively in the first quarter from $44 million and $207 million in the previous quarter.
Revenue grew by 13% to $2.3 billion, with revenue from sales of primary aluminum up 16% quarter-on-quarter to $1.92 billion on the back of an increase in the volume of sales and higher aluminum prices.
The company's total cost of sales rose by 9.2% year-on-year to $1.69 billion. The increase was primarily driven by a significant increase in electricity prices, railway transportation tariffs and other raw material costs in Russian ruble terms in the first quarter of 2017, the company said. Aluminum segment cost per tonne rose by 6% quarter-on-quarter and 7.5% year-on-year to $1,425.
The average realized aluminum price rose by 8% quarter-on-quarter and 17% year-on-year to $1,949 per tonne.
Rusal's net debt decreased by 2.4% from the end of 2016 to $8.2 billion. The company's net cash flow from operations dropped by 33% year-on-year to $215 million.
The aluminum market remained in robust health in the first quarter, with aluminum demand outside of China growing by 3.4% year-on-year in the first quarter of 2017, while demand in China grew by 7.5%, the company said.
"Aluminum demand is on track to grow by 5.0% to 62.7 million tonnes in 2017, supported by positive economic developments globally, all of which leaves Rusal well placed for the year ahead," Rusal said.