Shares of Rusal, the world’s largest aluminium producer, rose after it posted its first annual net profit in three years as production cost reduction and higher selling prices more than offset lower output.
The Moscow-based firm, controlled by Russian tycoon Oleg Deripaska, reported on Wednesday a net profit of US$293 million for last year, compared with a loss of US$3.32 billion in 2013. It had a net loss of US$55 million in 2012.
Excluding one-off asset valuation gains and losses, recurring net profit amounted to US$870 million, compared to a loss of US$598 million in 2013, the firm said in a filing to Hong Kong’s stock exchange.
“Rusal’s operating profit was 20 per cent ahead of our estimate for [last year’s fourth quarter] and implies an increase of 71 per cent [from the third quarter],” said Barlcay’s analysts in a note, adding it was driven by lower than expected production cost and sales and administration expenses.
“Rusal looks on track to deliver a significant improvement in earnings and cash flows on a full-year basis in 2015,” they said.
Rusal shares gained 1.42 per cent to HK$5.73 as of 2.15pm, outperforming a 0.1 per cent rise of the Hang Seng Index.
