Aluminium giant Rusal’s earnings growth beats expectations

14 November 2016

Russian aluminium giant Rusal on Friday posted a better-than-expected 22 percent rise in third quarter core earnings and lifted its forecast for global aluminium consumption.

Rusal’s third-quarter earnings before interest, taxation, depreciation and amortisation (EBITDA) increased to $421 million from $344 million in the second quarter and $420 million a year ago.

Analysts at five banks had forecast third quarter EBITDA of $390 million.

Hong Kong-listed Rusal also said it was raising its forecast for global demand for aluminium by 5.5 percent to 59.5 million tonnes in 2016 due to signs of healthy demand-growth in China, Russia and elsewhere.

“The Company remains optimistic as we approach the year-end, with aluminium consumption growing at a very healthy pace while supply remains tight due to stronger pressure from increasing cost inflation,” the company said in a statement.

“Domestic demand for aluminium is also growing at a very healthy pace and Rusal intends to boost its domestic sales,” it said.

The average London Metal Exchange aluminium price increased by 3.2 percent in the third quarter to $1,621 a tonne.

The metal reached an 18-month high of $1,783 a tonne this week.

Source – Reuters