11 November 2016

UC RUSAL announces 2016 third quarter and nine months results

UC RUSAL (SEHK: 486, Euronext: RUSAL/RUAL, Moscow Exchange: RUAL/RUALR), a leading global aluminium producer, announces its results for the three and nine months ended 30 September 2016.

 

Key highlights

 

·         The London Metals Exchange (“LME”) aluminium price recovered in the third quarter of 2016 by 3.2% to USD1,621 per tonne as compared to USD1,571 per tonne in the second quarter of the year, partially offset by 7.4% decrease in the average realized product premiums (to an average USD150 per tonne in the third quarter of 2016 from USD162 per tonne in the preceding quarter of the year) resulted in the growth of RUSAL’s revenue in the third quarter of 2016 by 3.9% to USD2,060 million as compared to USD1,982 million in the second quarter of 2016.

 

·         Aluminium segment cost per tonne decreased by 7.6% to USD1,330 in the third quarter of 2016 in comparison with USD1,440 in the same period of 2015 as a result of continuing focus on efficiency and cost reduction initiatives and external factors such as fluctuation of Russian Ruble to the US dollar and decrease of raw materials price.

 

·         Despite appreciation of Russian Ruble from average RUR65.9/1 US dollar in the second quarter of 2016 to RUR64.6/1 US dollar in the third quarter of the year the Company managed to decrease aluminium segment cost per tonne to USD1,330 from USD1,334 per tonne between the reporting periods.

 

·         The Company achieved Adjusted Net Profit and Recurring Net Profit of USD181 million and USD327 million, respectively, for the third quarter of 2016 as compared to USD40 million and USD276 million for the second quarter of the year.

 

·         In September 2016 the Board of Directors of the Company approved an interim dividend in the aggregate amount of USD250 million (USD0.01645 per ordinary share) for the financial year ending 31 December 2016. Payment of the interim dividend was subject to the Company obtaining prior consents from certain lenders of the Company. On 25 October 2016, the required consents have been obtained by the Company. The interim dividend was paid on 31 October 2016.

 

Commenting on the 2016 third quarter results, Vladislav Soloviev, CEO of RUSAL, said:

 

“In Q3 2016, RUSAL reported robust financial results thanks to the Company’s commitment to operational efficiency and cost discipline, supported by stronger LME prices. Adjusted EBITDA grew by 22.4% quarter-on-quarter to USD421 million while Recurring Net Profit for the period reached USD327 million, up 18.5% quarter-on-quarter. Our aluminium cash cost decreased to a multi-year low of USD1,330 per tonne whereas adjusted EBITDA margin stood at 20.4% in Q3 2016 highlighting RUSAL's leading position among the most efficient global aluminium producers.

 

RUSAL continues to focus on the higher value end of the upstream business through implementing improvements to our smelters. Increased global automotive demand has led to significant cast house investments into rolling slab and large diameter extrusion billet as we remain focused on producing alloys for the automotive industry, in particular non-wheel aluminium applications. While better fuel economy is on top of the global agenda, RUSAL makes its contribution by producing aluminium in Siberia where our smelters benefit from access to clean, renewable hydro power.

 

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. Therefore RUSAL has reviewed its global aluminium consumption growth forecast for the current year lifting it to 5.5%. Domestic demand for aluminium is also growing at a very healthy pace and RUSAL intends to boost its domestic sales reflecting the expected increase in consumption for aluminium in Russia and CIS, the market with significant potential for growth.”

 

Financial and operating highlights

 

Three months

ended 30 September

Change quarter on quarter, % (3Q to 3Q)

Three months ended 30 June

Change quarter on quarter, % (3Q to 2Q)

Nine months ended 30 September

Change nine months on nine

months, %

2016

2015

2016

2016

2015

unaudited

unaudited

 

unaudited

 

unaudited

unaudited

Key operating data

(‘000 tonnes)

Aluminium

920

916

0.4%

919

0.1%

2,755

2,724

1.1%

Alumina

1,865

1,870

(0.3%)

1,851

0.8%

5,589

5,496

1.7%

Bauxite

3,211

3,290

(2.4%)

3,126

2.7%

9,346

9,262

0.9%

Key pricing and performance data

(‘000 tonnes)

Sales of primary aluminium and alloys

981

939

4.5%

958

2.4%

2,896

2,762

4.9%

(USD per tonne)

Aluminium segment cost per tonne[1]

1,330

1,440

(7.6%)

1,334

(0.3%)

1,330

1,469

(9.5%)

Aluminium price per tonne quoted on the LME[2]

1,621

1,589

2.0%

1,571

3.2%

1,569

1,719

(8.7%)

Average premiums over LME price[3]

150

206

(27.2%)

162

(7.4%)

161

313

(48.6%)

Average sales price

1,754

1,843

(4.8%)

1,712

2.5%

1,711

2,087

(18.0%)

Alumina price per tonne[4]

234

294

(20.4%)

253

(7.5%)

236

326

(27.6%)

Key selected data from the consolidated interim condensed statement of income

(USD million)

Revenue

2,060

2,073

(0.6%)

1,982

3.9%

5,956

6,823

(12.7%)

Adjusted EBITDA

421

420

0.2%

344

22.4%

1,077

1,709

(37.0%)

margin (% of revenue)

20.4%

20.3%

NA

17.4%

NA

18.1%

25.0%

NA

Net Profit /(Loss) for the period

273

(54)

NA

135

102.2%

534

825

(35.3%)

margin (% of revenue)

13.3%

(2.6%)

NA

6.8%

NA

9.0%

12.1%

NA

Adjusted Net Profit for the period

181

181

0.0%

40

352.5%

248

616

(59.7%)

margin (% of revenue)

8.8%

8.7%

NA

2.0%

NA

4.2%

9.0%

NA

Recurring Net Profit for the period

327

287

13.9%

276

18.5%

752

1,137

(33.9%)

margin (% of revenue)

15.9%

13.8%

NA

13.9%

NA

12.6%

16.7%

NA

Key selected data from consolidated interim condensed statement of financial position

 

 

As at

Change nine months on year end,%

 

30 September 2016

31 December 2015

(USD million)

(unaudited)

 

 

 

 

 

 

Total assets

13,599

12,809

6.2%

Total working capital[5]

1,615

1,606

0.6%

Net Debt[6]

8,303

8,372

(0.8%)

 

Key selected data from consolidated interim condensed statement of cash flows

 

 

Nine months ended

Change nine months on nine months,%

 

30 September 2016

30 September 2015

(USD million)

(unaudited)

(unaudited)

 

 

 

 

 

Net cash flows generated from operating activities

966

1,400

(31.0%)

Net cash flows (used in)/generated from investing activities

(49)

221

NA

of which dividends from Norilsk Nickel

320

535

(40.2%)

of which CAPEX[7]

(407)

(362)

12.4%

Interest paid

(325)

(403)

(19.4%)

 

Global aluminium market trends

 

·         Global aluminium demand grew by 5.5% in the nine months to 30 September of 2016 year-on-year (“YoY”), as a result of strong demand in China, Europe, other Asia, North America and India.

·         RUSAL has raised its forecast for global aluminium demand to 5.5% YoY to 59.5 million tonnes in 2016, driven by Chinese growth improvement to of 7.5% to 31.2 million tonnes.

·         Global aluminium supply is now growing at a slower pace with strong pressure coming from increasing cost inflation. IAI and CRU data shows that during January–September 2016 primary aluminium production in the world (excluding China) rose by 2.1% YoY (days adj.) to 20.1 million tonnes.

·         During the January-September 2016 period China’s primary aluminium production fell 2.7% YoY to 23.223 million tonnes. Despite the new Chinese capacity launches that have been taking place since the middle of 2015, the net rise in capacity since August 2015 to August 2016 was only 0.9 million tonnes.

·         Chinese aluminium smelting costs continue to be under strong pressure from rising coal, power, alumina and logistic costs.

·         Alumina prices in China witnessed upwards momentum from the beginning of this year, increasing by above 50% in October from the beginning of the year. Steam coal prices have moved all the way up this year, up as much as 56% (January-October), pushing up power costs.

·         Global reported aluminium inventories fell to 4.975 million tonnes in September, the lowest since January 2009, and to 29.9 days of consumption – significantly below the pre-crisis level in August 2009 of 76.0 days of consumption, making aluminium the best positioned in the base metals universe.

·         Aluminium premiums in the key consuming regions started to improve during Q316 with 10-13% rise in September-October supported by strong demand and improved metal financing conditions.

 

Aluminium demand

RUSAL has raised its global aluminium demand forecasts to 5.5% in 2016 year-on-year (from previous 5.4%) to 59.5 million tonnes in 2016, as a result of ex-China demand increasing by 3.3% to 28.3 million tonnes, while in China the aluminium demand will grow by 7.5% to 31.2 million tonnes.

 

Worldwide demand excluding China amounted to 21.2 million tonnes (+3.3% year-on-year) in the nine months to 30 September 2016.

 

Industrial activity continued to improve during the third quarter with the Markit US Manufacturing PMI preliminary October reading climbed to 53.2, its highest mark this year, rising from 51.5 in September. European manufacturing activity growth accelerated to a 10-month high, with Eurozone PMI reaching 53.3 in October. Japan's Nikkei Flash Manufacturing PMI increased to 51.7 in October, the sharpest improvement in nine months, after a final reading of 50.4 in September 2016.

 

In North America, new house construction remained well above 1m units through Q3. Though there was a fall in construction of multifamily homes in September, single-family starts, which are more aluminium intensive, rose by 8.2% on a monthly basis. The number of new homes built in the first nine months of the year outpaced the volume of the previous year by over 4%. In addition, the latest building permit figures suggest good foundations for construction activity in the upcoming year. The other key indicator for the consumer market, the automotive industry, witnessed a slight increase in light vehicle production in September. While for the first nine months of the year, there was substantial growth by more than 2% in North America including Mexico, which is experiencing a boom in the automotive industry.

 

Overall, the improvement in European permit and housing data is encouraging as is the firm demand which has been seen in the automotive sector. In the UK, automotive production continues to see multi year highs. In the first nine months of the year, there were also robust car output in France (7.7%), Italy (7.8%) and Germany (2.4%). In Turkey, January-September car production saw a significant 13% pick up.

 

In Japan, January-August production of rolled products stabilized while their shipments to the automobile segment jumped by 16% despite a decline in car production, proving the ongoing trend of BIW (body in white) service. Extruded products showed a healthy 6% rise, which was supported by new constructions starts, which saw a strong 5.3% rise in the same period.

 

India became the world’s fifth largest car manufacturer during the first seven months of the year overtaking South Korea. In the January-August period domestic automotive production grew by 7.2%.

 

In Russia, improving oil prices helped GDP to slow down its contraction in the first nine months of the year. The third quarter number stabilized at +0.1% on a quarterly basis, which is the highest since mid-2014. The upturn in Russia’s manufacturing sector continued for a second successive month during September. Manufacturing PMI further expanded up to 51.1.

 

Construction gained 6.3% in September on a monthly basis however the volume for the first nine months of the year is still far away from the previous year’s number. Automotive production declined by 11% in the January-August period, while sales of domestic brand cars grew by 4.7% in September.

 

China’s primary aluminium consumption increased 7.5% year-on-year to 24.4 million tonnes for the nine months ending 30 September 2016.

 

China’s economic growth remained stable in the Q3, ensuring the government’s full-year growth target. Gross domestic product rose 6.7% in 3Q16 YoY (higher than the 6.1% growth forecast by analysts), China's industrial output rose 6.1% YoY and retail sales increased 10.7%. Fixed-asset investment in the first nine months grew 8.2% YoY. China produced 2.53 million units of vehicles in September (+32.8% YoY, and +26.8% MoM), according to monthly data released by the CAAM.

 

Aluminium supply

IAI and CRU data shows that during January – September 2016 primary aluminium production in the world (excluding China) rose by 2.1% YoY (days adj.) to 20.1 million tonnes.

 

Global aluminium supply is now growing at a slower pace with strong pressure coming from increasing cost inflation including power and alumina. Still around 1.3 Mtpy (5% of the global production capacity outside China) of aluminium production capacity is loss making at current LME price (including premiums) and around 30% operate at low margin.

 

Chinese aluminium smelting costs continue to be under strong pressure from rising power, alumina and logistic costs. Alumina prices in China entered an upward trajectory in the beginning of this year, increasing by above 50% in October since January 2016. Steam coal prices have increased up to as much as 56% (January-October), pushing up power costs.

 

According to Chinese CNIA data, on a yearly basis China`s daily average aluminium production increased by only 1.3% in September after falling for the previous five consecutive months. During the January-September 2016 period China`s primary aluminium production fell 2.7% YoY to 23.223 million tonnes. Despite the new Chinese capacity launches that have been taking place since the middle of 2015, the net rise in capacity since August 2015 to August 2016 was only 0.9 million tonnes as the majority of closed capacity is still frozen and additional restarts may well be limited amid increasing pressure from the cost of aluminium production and difficulties related to access to financing.

 

Chinese exports remain stagnant as a result of weak arbitrage and a tight domestic metal market. For January-September 2016 China’s exports of aluminium semis fell 2.0% YoY (days adj.) to 3.09 million tonnes as compared to 3.14 million tonnes for the same period during 2015.

 

Financial overview

 

Revenue

Three months ended 30 September

Change quarter on quarter, % (3Q to 3Q)

Three months ended 30 June

Change quarter on quarter, % (3Q to 2Q)

Nine months ended 30 September

Change nine months on nine

months, %

2016

2015

2016

2016

2015

unaudited

unaudited

 

unaudited

 

unaudited

unaudited

Sales of primary aluminium and alloys

USD million

1,721

1,731

(0.6%)

1,640

4.9%

4,955

5,763

(14.0%)

kt

981

939

4.5%

958

2.4%

2,896

2,762

4.9%

Average sales price (USD/t)

1,754

1,843

(4.8%)

1,712

2.5%

1,711

2,087

(18.0%)

Sales of alumina

USD million

157

147

6.8%

151

4.0%

458

451

1.6%

kt

566

418

35.4%

525

7.8%

1,697

1,237

37.2%

Average sales price (USD/t)

277

352

(21.3%)

288

(3.8%)

270

365

(26.0%)

Sales of foil (USD million)

62

65

(4.6%)

62

0.0%

175

207

(15.5%)

Other revenue (USD million)

120

130

(7.7%)

129

(7.0%)

368

402

(8.5%)

Total revenue
(USD million)

2,060

2,073

(0.6%)

1,982

3.9%

5,956

6,823

(12.7%)

 

Total revenue decreased by USD867 million, or 12.7% to USD5,956 million in the nine months ended 30 September of 2016, from USD6,823 million in the corresponding period of 2015. The decrease in total revenue was primarily due to the lower sales of primary aluminium and alloys, which accounted for 83.2% and 84.5% of RUSAL’s revenue for the nine months ended 30 September of 2016 and 2015, respectively.

 

Revenue from sales of primary aluminium and alloys decreased by USD808 million, or 14.0% to USD4,955 million in the nine months ended 30 September of 2016, from USD5,763 million for the corresponding period in 2015, primarily due to a 18.0% decrease in the weighted-average realized aluminium price per tonne driven by a decrease in the LME aluminium price (to an average of USD1,569 per tonne in the first nine months of 2016 from USD1,719 per tonne in the same period of 2015), as well as a decrease in premiums above the LME prices in the different geographical segments (to an average of USD161 per tonne from USD313 per tonne in the first nine months of 2016 and 2015, respectively) partially offset by 4.9% increase in the sales volume.

 

The Company’s revenue from sales of primary aluminium and alloys increased by 4.9% to USD1,721 million in the third quarter of 2016 from USD1,640 million in the second quarter of 2016. This growth resulted primarily from a 2.5% increase in the weighted average realised aluminium price per tonne, which was driven by an increase in the LME aluminium price (to an average of USD1,621 per tonne in the third quarter of 2016 from USD1,571 per tonne in the second quarter of 2016) and 2.4% increase in the sales volume.

 

Revenue from sales of alumina was almost flat during the nine months of 2016 and the same period of 2015 as 37.2% increase in sales volume was compensated by 26.0% decrease in the average sales price.

 

Revenue from sales of foil decreased by USD32 million, or by 15.5%, to USD175 million in the nine months ended 30 September of 2016, as compared to USD207 million for the corresponding period of 2015 as a result of a 7.9% decrease in the weighted average sales price and 8.2% decrease in sales volumes.

 

Revenue from other sales, including sales of bauxite and energy services decreased by 8.5% to USD368 million for the nine months ended 30 September of 2016 from USD402 million in the same period of 2015, due to a 20.7% decrease in sales of other materials.

 

Cost of sales

The following table demonstrates the breakdown of UC RUSAL’s cost of sales for the nine months ended 30 September 2016 and 2015:

 

 

Nine months ended

30 September

Change,
%

Share of costs,
%

 

2016

2015

 

 

 

(unaudited)

(unaudited)

 

 

(USD million)

 

 

 

 

Cost of alumina

579

557

3.9%

12.6%

Cost of bauxite

331

418

(20.8%)

7.2%

Cost of other raw materials and other costs

1,556

1,735

(10.3%)

33.9%

Purchases of primary aluminium from JV

170

5

3,300.0%

3.7%

Energy costs

1,194

1,306

(8.6%)

26.0%

Depreciation and amortisation

326

323

0.9%

7.1%

Personnel expenses

392

386

1.6%

8.5%

Repairs and maintenance

45

43

4.7%

1.0%

Net change in provisions for inventories

15

(100.0%)

0.0%

Total cost of sales

4,593

4,788

(4.1%)

100.0%

 

Total cost of sales decreased by USD195 million, or 4.1%, to USD4,593 million for the nine months of 2016, as compared to USD4,788 million for the corresponding period in 2015. The decrease was primarily driven the continuing depreciation of the Russian Ruble and the Ukrainian Hryvnia against the US dollar by 15.3% and 19.1%, respectively, between the reporting periods, which was partially offset by the increase in volumes of primary aluminium and alloys sold.

 

Cost of alumina increased by USD22 million, or 3.9% to USD579 million for the reporting period, as compared to USD557 million for the same period of 2015. The increase was primarily driven by the growth in the aggregate volumes of aluminium sold for 4.9% (or 134 thousand tonnes).

 

Cost of bauxite decreased by 20.8% in the nine months of 2016 as compared to the same period of prior year, primarily as a result of a decrease in purchase price.

 

Cost of raw materials (other than alumina and bauxite) and other costs decreased by 10.3% in the nine months of 2016 compared to the same period of the previous year due to a lower raw materials purchase price (such as raw petroleum coke by 24.1%, calcined petroleum coke by 20.0% and raw pitch coke by 12.3%).

 

Energy cost decreased by 8.6% in the nine months of 2016 compared to the same period of 2015, primarily due to the continuing depreciation of the Russian Ruble against the US dollar and 9.0% decrease in the average electricity tariff.

 

Adjusted EBITDA

Adjusted EBITDA, defined as results from operating activities adjusted for amortisation and depreciation, impairment charges and loss on disposal of property, plant and equipment, increased by 22.4% to USD421 million in the third quarter of 2016 from USD344 million in the second quarter of 2016 and remained practically flat as compared to USD420 million in the third quarter of 2015.

 

Adjusted EBITDA margin improved to 20.4% in the third quarter of 2016 from 17.4% in the second quarter of 2016 and from 20.3% in the third quarter of 2015.

 

During the nine months ended 30 September of 2016, adjusted EBITDA decreased to USD1,077 million, as compared to USD1,709 million for the corresponding period of 2015, primarily due to lower total revenue resulting from weaker LME prices in the first nine months of 2016 as compared to corresponding period in 2015.

 

Net Profit for the period

The Company recorded a net profit of USD273 million in the third quarter of 2016 as compared to a loss of USD54 million in the third quarter of 2015 and up 102.2% from USD135 million in the second quarter of 2016. Net Profit for the nine months ended 30 September 2016 amounted to USD534 million, as compared to USD825 million for the same period of 2015.

 

Adjusted and Recurring Net Profit

 

Three months

ended 30 September

Change quarter on quarter, % (3Q to 3Q)

Three months ended 30 June

Change quarter on quarter, % (3Q to 2Q)

Nine months ended 30 September

Change nine months on nine

months, %

2016

2015

2016

2016

2015

unaudited

unaudited

 

unaudited

 

unaudited

unaudited

(USD million)

Reconciliation of Adjusted Net Profit/(Loss)

Net profit/(loss) for the period

273

(54)

NA

135

102.2%

534

825

(35.3%)

Adjusted for:

Share of profits and other gains and losses attributable to Norilsk Nickel, net of tax effect, with

(146)

(106)

37.3%

(236)

(38.1%)

(504)

(521)

(3.3%)

Share of profits, net of tax

(146)

(106)

37.3%

(236)

(38.1%)

(504)

(521)

(3.3%)

Change in the fair value of derivative financial liabilities, net of tax (20.0%)

8

236

(96.6%)

105

(92.4%)

117

310

(62.3%)

Foreign currency gain recycling from other comprehensive income on deconsolidated subsidiary

60

(100.0%)

0.0%

(95)

(100.0%)

Impairment of non-current assets, net of tax

46

45

2.2%

36

27.8%

101

77

31.2%

Net impairment of underlying net assets of joint ventures

NA

NA

20

(100.0%)

Adjusted Net Profit

181

181

0.0%

40

352.5%

248

616

(59.7%)

Add back:

Share of profits of Norilsk Nickel, net of tax

146

106

37.7%

236

(38.1%)

504

521

(3.3%)

Recurring Net Profit

327

287

13.9%

276

18.5%

752

1,137

(33.9%)

 

Adjusted Net Profit for any period is defined as the net profit adjusted for the net effect of the Company’s investment in Norilsk Nickel, the net effect of derivative financial instruments and the net effect of non-current assets impairment. Recurring Net Profit for any period is defined as Adjusted Net Profit plus the Company’s net effective share in Norilsk Nickel results.

 

Segment reporting

The Group has four reportable segments, which are the Group’s strategic business units: Aluminium, Alumina, Energy and Mining and Metals. These business units are managed separately and results of their operations are reviewed by the CEO on a regular basis. The core segments are Aluminium and Alumina.

 

 

Nine months ended

30 September

 

 

2016

2015

 

Aluminium

Alumina

Aluminium

Alumina

(USD million)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Segment revenue

 

 

 

 

kt

2,948

6,128

2,847

5,040

USD million

5,021

1,531

5,882

1,596

Segment result

815

3

1,424

179

Segment EBITDA[8]

1,099

65

1,699

238

Segment EBITDA margin

21.9%

4.2%

28.9%

14.9%

 

 

 

 

 

Total capital expenditure

228

98

206

107

 

The segment result margin (calculated as a percentage of segment profit to total segment revenue per respective segment) from continuing operations decreased to 16.2% in the nine months ended 30 September 2016 from 24.2% in the same period in 2015 for the aluminium segment, and was 0.2% compared to 11.2%, respectively, for the alumina segment. Key drivers for the increase in margins in the aluminium segment are disclosed in “Revenue”, “Cost of sales” and “Adjusted EBITDA” sections above. Detailed segment reporting can be found in the consolidated interim condensed financial information as at and for the three- and nine-month periods ended 30 September 2016.

 

[1] For any period, “Aluminium segment cost per tonne” is calculated as aluminium segment revenue less aluminium segment results less amortisation and depreciation divided on sales volume of the aluminium segment.

2 Aluminium price per tonne quoted on the LME represents the average of the daily closing official LME prices for each period.

3 Average premiums over LME realized by the company based on management accounts.

4 The average alumina price per tonne provided in this table is based on the daily closing spot prices of alumina according to Non-ferrous Metal Alumina Index FOB Australia USD per tonne.

5 Total working capital is defined as inventories plus trade and other receivables minus trade and other payables. 

6 Net Debt is calculated as Total Debt less cash and cash equivalents as at the end of any period. Total Debt refers to UC RUSAL’s loans and borrowings and bonds outstanding at the end of any period. 

7 CAPEX is defined as payment for the acquisition of property, plant and equipment and intangible assets.

8 Segment EBITDA for any period is defined as segment result adjusted for amortisation and depreciation for the segment.

 

 

Forward-looking statements

This press-release contains statements about future events, projections, forecasts and expectations that are forward-looking statements. Any statement in this announcement that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements  expressed or implied by such forward-looking statements. These risk and uncertainties include those discussed or identified in the prospectus for UC RUSAL. In addition, past performance of UC RUSAL cannot be relied on as a guide to future performance. UC RUSAL makes no representation on the accuracy and completeness of any of the forward-looking statements, and, except as may be required by applicable law, assumes no obligations to supplement, amend, update or revise any such statements or any opinion expressed to reflect actual results, changes in assumptions or in UC RUSAL’s expectations, or changes in factors affecting these statements. Accordingly, any reliance you place on such forward-looking statements will be at your sole risk.




[1] For any period, “Aluminium segment cost per tonne” is calculated as aluminium segment revenue less aluminium segment results less amortisation and depreciation divided on sales volume of the aluminium segment.


[2] Aluminium price per tonne quoted on the LME represents the average of the daily closing official LME prices for each period.


[3] Average premiums over LME realized by the company based on management accounts.


[4] The average alumina price per tonne provided in this table is based on the daily closing spot prices of alumina according to Non-ferrous Metal Alumina Index FOB Australia USD per tonne.


[5] Total working capital is defined as inventories plus trade and other receivables minus trade and other payables. 


[6] Net Debt is calculated as Total Debt less cash and cash equivalents as at the end of any period. Total Debt refers to UC RUSAL’s loans and borrowings and bonds outstanding at the end of any period. 


[7] CAPEX is defined as payment for the acquisition of property, plant and equipment and intangible assets.


[8] Segment EBITDA for any period is defined as segment result adjusted for amortisation and depreciation for the segment.



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