|
Key
highlights
l
In
2019, the whole aluminium industry continued to see challenging
environment. RUSAL’s revenue for the year ended 31 December 2019
decreased by 5.5% to USD9,711 million as compared to USD10,280 million
for 2018
following a
15.1% decrease
in the
average London
Metals Exchange
(“LME”) aluminium price from USD2,110 per tonne in 2018 to
USD1,792 per tonne in 2019 and a 11.2% drop in the average realized
premiums to the LME price.
l
The
decrease of the aluminium price in the last year was partially offset by
the 13.8% increase in sales of primary aluminium and alloys in 2019 as
compared with 2018. The 26.2% growth in aluminium sales volumes in the
last quarter of 2019 as compared with the last quarter of 2018 resulted in
the increase in revenue by 5.2% to USD2,489 million for the last quarter
of 2019 as compared to USD2,365 million in the same quarter of 2018. The
average premium increased by 32.4% to USD143 per tonne for the last
quarter of 2019 as compared to USD108 per tonne in the fourth quarter of
2018.
l
Despite
the market volatility, the production cost per tonne in aluminium segment
in 2019 went down by 1.2% to USD1,627 per tonne, compared to USD1,646 per
tonne in 2018 as a result of efficient cost management.
l
During
the last quarter of 2019 the Company continued optimization of the cost
and structure of its debt portfolio by entering into a 5-year new
sustainability-linked pre-export finance facility (PXF2019) of USD1,085
million (the interest rate is subject to the Company’s fulfilment of the
sustainability KPIs) and successful placement of 4th tranche of local
bonds in the amount of RUB15 billion with the record low rate of 7.45%.
The deal was subsequently hedged into USD, resulting in the USD interest
rate of 3.65%.
Commenting
on the full year 2019 results, Evgenii Nikitin, CEO of RUSAL, said:
“It
is no understatement to say that during the last year, both RUSAL and the
whole industry witnessed a variety of challenging conditions that included
the average LME aluminium price slumping by over 15%, which contributed to
our annual revenue decrease, as compared with the 2018 results. The
situation was aggravated by the missed mating season that was the result
of the OFAC sanctions.
Capping
off that challenging year for the Company, we remained attractive to the
investment community by staying committed to our strategy that is focused
on the development and promotion of new VAP aluminium products and alloys,
along with self-sufficiency with our raw materials.
The
interest and support received from the investment and financial community
proved itself through two successful capital raising deals: first, the
Company has completed four rouble bond placements with a collective total
value of approximately USD930 mln. Second, RUSAL became the first ever
company on the Russian market to sign a sustainability linked syndicated
facility arranged by leading international and Russian commercial banks of
over USD1 bln, a record.
In
2019, we continued to deepen our customer relationships, as we have
managed to return to the VAP market and renewed a number of long-term
contracts, while moving forward with strengthening our market position as
the world’s largest producer of green aluminium.”
Financial
and operating highlights
|
|
Quarter ended 31 December
|
Change quarter on quarter, % (4Q to
4Q)
|
Quarter ended 30 September
|
Change quarter on quarter, % (4Q to
3Q)
|
Year ended 31 December
|
Change, year-on-year, %
|
|
2019 unaudited
|
2018 unaudited
|
|
2019 unaudited
|
|
2019
|
2018
|
|
|
Key operating data(‘000 tonnes)
|
|
|
|
|
|
|
|
|
|
Aluminium
|
948
|
943
|
0.5%
|
942
|
0.6%
|
3,757
|
3,753
|
0.1%
|
|
Alumina
|
2,050
|
1,958
|
4.7%
|
1,957
|
4.8%
|
7,858
|
7,774
|
1.1%
|
|
Bauxite
|
4,026
|
3,719
|
8.3%
|
3,948
|
2.0%
|
16,047
|
13,847
|
15.9%
|
|
Key pricing and performance data(‘000
tonnes)
|
|
|
|
|
|
|
|
|
|
Sales of primary aluminium and
alloys(USD per tonne)
|
1,107
|
877
|
26.2%
|
1,091
|
1.5%
|
4,176
|
3,671
|
13.8%
|
|
Production cost per tonne in
Aluminium segment
|
1,588
|
1,606
|
-1.1%
|
1,612
|
-1.5%
|
1,627
|
1,646
|
-1.2%
|
|
Aluminium price per tonne quoted on
the LME
|
1,754
|
1,968
|
-10.9%
|
1,761
|
-0.4%
|
1,792
|
2,110
|
-15.1%
|
|
Average premiums over LME price
|
143
|
108
|
32.4%
|
145
|
-1.4%
|
135
|
152
|
-11.2%
|
|
Average sales price
|
1,873
|
2,115
|
-11.4%
|
1,896
|
-1.2%
|
1,920
|
2,259
|
-15.0%
|
|
Alumina price per tonne
|
280
|
444
|
-36.9%
|
300
|
-6.7%
|
332
|
473
|
-29.8%
|
Financial
overview
|
|
Year ended 31 December 2019
|
Year ended 31 December 2018
|
|
USD million
|
kt
|
Average sales price (USD/t)
|
USD million
|
kt
|
Average sales price (USD/t)
|
|
Sales of primary aluminium and alloys
|
8,019
|
4,176
|
1,920
|
8,293
|
3,671
|
2,259
|
|
Sales of alumina
|
664
|
1,753
|
379
|
975
|
1,930
|
505
|
|
Sales of foil and other aluminium
products
|
410
|
—
|
—
|
346
|
—
|
—
|
|
Other revenue
|
618
|
—
|
—
|
666
|
—
|
—
|
|
Total revenue
|
9,711
|
|
|
10,280
|
|
|
Revenue
|
|
Quarter ended 31 December
|
Change quarter on quarter, % (4Q to
4Q)
|
Quarter ended 30 September
|
Change quarter on quarter, % (4Q to
3Q)
|
Year ended 31 December
|
Change, year-on-year, %
|
|
2019 unaudited
|
2018 unaudited
|
|
2019 unaudited
|
|
2019
|
2018
|
|
|
Sales of primary aluminium and alloys
|
|
|
|
|
|
|
|
|
|
USD million
|
2,073
|
1,855
|
11.8%
|
2,069
|
0.2%
|
8,019
|
8,293
|
-3.3%
|
|
kt
|
1,107
|
877
|
26.2%
|
1,091
|
1.5%
|
4,176
|
3,671
|
13.8%
|
|
Average sales price (USD/t)
|
1,873
|
2,115
|
-11.4%
|
1,896
|
-1.2%
|
1,920
|
2,259
|
-15.0%
|
|
Sales of alumina
|
|
|
|
|
|
|
|
|
|
USD million
|
162
|
256
|
-36.7%
|
162
|
0.0%
|
664
|
975
|
-31.9%
|
|
kt
|
512
|
473
|
8.2%
|
450
|
13.8%
|
1,753
|
1,930
|
-9.2%
|
|
Average sales price(USD/t)
|
316
|
541
|
-41.6%
|
360
|
-12.2%
|
379
|
505
|
-25.0%
|
|
Sales of foil and other aluminium
products (USD million)
|
93
|
72
|
29.2%
|
112
|
-17.0%
|
410
|
346
|
18.5%
|
|
Other revenue (USD million)
|
161
|
182
|
-11.5%
|
143
|
12.6%
|
618
|
666
|
-7.2%
|
|
Total revenue (USD million)
|
2,489
|
2,365
|
5.2%
|
2,486
|
0.1%
|
9,711
|
10,280
|
-5.5%
|
Cost of
sales
|
(USD million)
|
Year ended
31 December
|
Change, year-on-year, %
|
Share of costs, %
|
|
2019
|
2018
|
|
Cost of alumina
|
764
|
877
|
-12.90%
|
9.40%
|
|
Cost of bauxite
|
483
|
495
|
-2.40%
|
6.00%
|
|
Cost of other raw materials and other
costs
|
2,515
|
2,833
|
-11.20%
|
31.00%
|
|
Purchases of primary aluminium from
JV
|
454
|
307
|
47.90%
|
5.60%
|
|
Energy costs
|
2,054
|
2,147
|
-4.30%
|
25.30%
|
|
Depreciation and amortisation
|
549
|
498
|
10.20%
|
6.80%
|
|
Personnel expenses
|
499
|
582
|
-14.30%
|
6.20%
|
|
Repairs and maintenance
|
358
|
74
|
383.80%
|
4.40%
|
|
Reversal of inventories
|
-16
|
-20
|
-20.00%
|
-0.30%
|
|
Change in finished goods
|
453
|
-347
|
NA
|
5.60%
|
|
Total cost of sales
|
8,113
|
7,446
|
9.00%
|
100.00%
|
Source:
RUSAL
|
