Rusal 2011 profit falls 92%, Norilsk investment blamed

摘要

Russia’s UC Rusal said Monday it postedna net profit of $237 million for 2011, downn91.7% from $2.867 billion for 2010. Thenaluminum producer attributed the fall innprofit to “the carrying value of the company’sninvestment in Norilsk Nickel, whichnis attributable to the sales and purchasesnby Norilsk Nickel of its own shares (buyback)nduring the year.” Adjusted net profitnfor the year – which Rusal referred to asnthe major indicator of the company’s corenbusiness results – increased by 24.6% ton$987 million from $792 million in 2010ndue to lower interest payments followingndebt refinancing and a decrease in debt.nRusal defined adjusted net profit as thennet profit adjusted for the net effect of thencompany’s investment in Norilsk Nickel, thennet effect of embedded derivative financialninstruments, the excess of effective interestnrate charges over nominal interest ratencharges on restructured debt and the netneffect of non-current assets impairment.nOn its outlook for 2012 Rusal said, “whilenthe current global economic volatility, innconjunction with excessive stock levels,nwill continue to put pressure on aluminiumnprices in the near term, global aluminiumndemand remains well above 2009 recessionnlevels and we anticipate that the risingninfluence of developing countries willnensure demand remains robust throughoutn2012.” Rusal said it was expecting globalnprimary aluminium consumption to reachn48.2 million mt in 2012, 7% higher thann2010 global consumption, with China beingnthe largest growing market (11% growth),nfollowed by India (10% growth), RussiaCommonwealth of Independent States) (6%ngrowth), Japan (5% growth), North American(5% growth) and Latin America (5% growth).nAluminium consumption in the eurozonenduring 2012 is expected to be flat comparednwith 2011, it said. Rusal said it wasnexpecting the global aluminium market tonbe almost balanced in 2012.