Alrosa could see 1.7 bln rubles net profit in 2009
YAKUTSK. Oct 23 (Interfax) - The government of the mineral-rich Russian internal republic of Yakutia thinks Alrosa, Russia's Yakutia-based diamond monopoly, could close this year with net profit of 1.7 billion rubles.
"We expect, as a result of the fact that the Russian government has approved the republic's proposals on support for the diamond company, that Alrosa will close the year with a positive financial result. We estimate the company's net profit will be approximately 1.7 billion rubles. The forecast is based firstly on the fact that diamond procurement by the [State Precious Metals and Gemstones Repository] Gokhran has been resolved, and secondly due to the resumption this summer of diamond sales [on the market]," Alexei Struchkov, Yakutia's economic development minister, told Interfax.
Alrosa chief Fyodor Andreyev has said the company's main goal this year was to balance its books. The company had net losses of 14 billion rubles in the first half of 2009, but these fell to 8 billion rubles in the nine months ended September 30.
Net losses to International Financial Reporting Standards (IFRS) were 32.598 billion rubles in 2008, compared with net profit of 15.981 billion rubles in 2007. Alrosa closed 2008 with net profit of 3.78 billion rubles to Russian Accounting Standards (RAS), down 73% from 2007.