Rusal posts flat Q3 EBITDA of $130 mln, below forecast
MOSCOW. Nov 12 (Interfax) - UC Rusal's adjusted earnings before taxes, depreciation and amortization (EBITDA) were $130 million in Q3 2013, level with the same period of last year, the Russian aluminum giant said in a report.
Analysts predicted in a consensus forecast for Interfax that EBITDA would grow 2.3% year-on-year in the quarter to $133 million.
Adjusted EBITDA fell 20.7% year-on-year in January-September to $550 million.
"In the third quarter of 2013, the situation in the aluminium industry has remained particularly challenging. However, the company has managed to withstand the LME aluminium price reaching its lowest level since the second quarter of 2009 and reduce its net loss as compared to the previous quarter of the year thanks to measures aimed at improving business efficiency, among other factors," Rusal said.
Sales revenue fell 5.1% year-on-year in Q3 to $2.432 billion, above a forecast $2.369 billion. Revenue fell 7.6% in 9M to $7.635 billion.
Revenue from sales of primary aluminium and alloys decreased by $611 million, or by 8.6%, to $6.466 billion in the nine months, due primarily to the decline in the LME aluminium price (which decreased to an average of $1,871 per tonne from $2,025 per tonne for the 9M of 2013 and 2012, respectively) as well as from a 7.0% decrease in volumes of the primary aluminium and alloys sold. The decrease in average LME aluminium prices was partially offset by a 38.7% growth in premiums above the LME price in the different geographical segments (to an average of $269 per tonne from $194 per tonne for 9M of 2013 and 2012, respectively).
As a result of the mothballed production at the least efficient European smelters in line with the ongoing capacity curtailment program, aluminium segment cost per tonne decreased by 2.0% to $1,872 in Q3 2013, in comparison with $1,911 per tonne for the preceding quarter, hitting a new low since the end of 2010, supported by the depreciation of the ruble against the US dollar by 3.5% to 32.8 rubles in Q3 2013 from 31.7 rubles for the previous quarter of the year.
Adjusted net losses were $232 million in Q3 - the analysts forecast $124 - compared with $248 million in the same period of last year. Adjusted net loss grew 30.6% year-on-year in January-September to $470 million. Adjusted net loss for any period is defined as the net loss adjusted for the net effect of the company's investment in MMC Norilsk Nickel , the net effect of embedded derivative financial instruments, the excess of effective interest rate charges over nominal interest rate charges on restructured debt and the net effect of non-current assets impairment.
Recurring net income, defined as adjusted net loss plus the company's net effective share in Norilsk Nickel's results, was $136 million in Q3, compared with losses of $136 million in the same period of last year. Rusal had recurring net losses of $288 million in 9M 2013, compared with $143 million in the same period of last year.
Net debt fell 6.3% during January-September to $10.142 billion.
Rusal financial highlights in Q3 and 9M 2013 ($ mln):
| Q3 2013 | Q3 2012 | % change | 9M 2013 | 9M 2012 | % change | |
| Sales revenue | 2432 | 2 563 | -5,1% | 7635 | 8 267 | -7,60% |
| Adjusted EBITDA | 130 | 130 | - | 550 | 694 | -20,70% |
| Adjusted EBITDA margin | 5,30% | 5,1% | 0,2 pp | 7,20% | 8,4% | -1,2 pp |
| Net income (loss) | -172 | -118 | 45,80% | -611 | -117 | 5,2-fold |
| Adjusted net income(loss) | -232 | -248 | -6,50% | -470 | -360 | 30,60% |
| Recurring net income | -132 | -76 | 73,70% | -288 | 143 | - |
On October 1, 2013, the Rusal board of directors announced amendments to the initial Agreement with Norilsk Nickel, that guarantee stable dividends from Norilsk Nickel, "ensuring an additional cushion for UC Rusal," the company said.
