Alrosa EBITDA down 17%, net profit 30% in 9M
MOSCOW. Dec 4 (Interfax) - Alrosa saw its earnings before taxes, depreciation and amortization (EBITDA) fall 17% year-on-year in January-September to 48.241 billion rubles, the diamond miner said in a statement.
This was level with the 48.5 billion rubles that analysts predicted in a consensus forecast for Interfax.
Net profit to International Financial Reporting Standards (IFRS) fell 30% to 24.839 billion rubles after analysts forecast 22.8 billion rubles.
Alrosa financial highlights (mln rubles):
| 9M 2012 | 9M 2011 | Change | Q3 2012 | Q3 2011 | Change | |
| Diamond mine output, mln carats | 25,4 | 26,2 | -3% | 9,1 | 6,9 | 32% |
| Rough diamond sales, mln carats | 22,3 | 28,2 | -21% | 5,1 | 9,1 | -44% |
| Sales revenue | 104 319 | 107 315 | (3%) | 27 791 | 41 168 | -32% |
| Cost of sale | (47 208) | (38 054) | 24% | (13 257) | (14 935) | -11% |
| EBITDA | 48 241 | 58 390 | -17% | 12 717 | 22 512 | -44% |
| EBITDA margin | 46% | 54% | - | 46% | 55% | - |
| Net profit | 24 839 | 35 528 | -30% | 8 623 | 9 261 | -7% |
| Net profit margin | 24% | 33% | - | 31% | 22% | - |
| Cash and cash equivalents | 10 521 | 22 749 | -54% | 10 521 | 22 749 | -54% |
| Total debt | 140 085 | 107 483 | 30% | 140 085 | 107 483 | 30% |
| Total debt/EBITDA | 2,5x | 1,7x | - | 2,5x | 1,7x | - |
Revenue fell 3% to 104.319 billion rubles (forecast - 106.2 billion rubles) due to a 32% drop in rough diamond sales in Q3 compared with Q2. Rough diamond sales fell 21% year-on-year in the 9M to 22.3 million carat and 44% in Q3 to 5.1 million carat.
Gem diamonds averaged up 4% year-on-year in 9M to $119 per carat, but were down 9% year-on-year to $221.3 a carat in Q3 due to pressure from weak demand. Prices averaged up 1.7% to $207.8 a carat in Q3 compared with Q2.
The cost of sales rose 24% to 47.2 billion rubles. Operating costs rose 27% to 55.38 billion rubles. Movement in inventory was estimated at 9.486 billion rubles, compared with 5.8 billion rubles a year previously.
Capex grew 51% year-on-year to 21.15 billion rubles as expansion capex soared 86% to 10.95 billion rubles and maintenance capex rose 26%. Capex grew due to the construction of the Udachny deep mine (4.05 billion rubles), expansion of the Severalmaz capacity (3.025 billion rubles) and investment in gas assets (1.724 billion rubles).
The Alrosa group, which in addition to OJSC Alrosa also includes Alrosa Nyurba , Almazy Anabara, Severalmaz and 32.8% stake in Angola's Catoca, expects sales to grow 3% to $4.5 billion in 2012. The company plans to produce 34.4 million carats of rough diamonds.
Catoca is not included in the financial report to IFRS.