UC Rusal grows due to deficit, but aluminum production in the world also grows

UC Rusal, benefiting from the fall of the ruble and high premiums for aluminum, is preparing to prepay about $1 billion from $8.8 billion of its debt. This year, the company’s profitability can be maintained at the level of 26%, UC Rusal believes and predicts a strong demand due to shortage of aluminum in the world outside of China until 2018 in the amount of 1 million tons per year. But China increases its capacity, and with them - the export volumes.

UC Rusal, the main shareholder of which is En + of Oleg Deripaska (48.13%), has reported on the first annual profit since 2011: in 2014 it was $293 million, while in 2013 the company received $3.32 billion of loss. The revenue decreased by 4% to $9.35 billion, but adjusted EBITDA grew more than 2 times to $1.5 billion (and its margin increased 2.5 times, to 16.2%). The sharp devaluation of the ruble and record premium to the price of primary aluminum on the LME (in general, the level of premiums amounted to $380 per ton, and in October - December it exceeded $500) led to the fact that in the fourth quarter the UC Rusal’s EBITDA margin reached 26%.