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United Company RUSAL Plc (Paris:RUSAL) (Paris:RUAL):

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UNITED COMPANY RUSAL PLC(Incorporated under the laws of Jersey with limited liability)(Stock Code: 486)

SECOND QUARTER 2015 TRADING UPDATE

This announcement is made by United Company RUSAL Plc (“UC RUSAL” or the “Company”) pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Cap. 571, Laws of Hong Kong) and applicable French laws and regulations.

Shareholders and potential investors are advised to exercise caution when dealing in the shares of UC RUSAL.

UC RUSAL announces its operating results for second quarter 2015 (“2Q15”).

Key highlights:

  • Total aluminium output amounted to 908 thousand tons (+0.8% QoQ and +1.1% YoY in 2Q15). The Company maintains production discipline in accordance with the previously provided guidance.
  • Sales volumes in 2Q15 amounted to 880 thousand tons (-5.1 % QoQ). Decrease in sales volumes in 2Q15 resulted from the higher than normal sales in 1Q15 when shipment delays caused by port weather conditions in October to November 2014 were compensated.
  • The average realized price went down 7.7% QoQ to US$ 2124/t in 2Q15 driven by lower London Metal Exchange (LME) cash price and declining physical premium across key export markets.
  • UC RUSAL volume of alumina production remained flat at 1,818 thousand tons in 2Q15 (+0.6% QoQ and +0.8%YoY).
  • UC RUSAL bauxite production amounted to 3,223 thousand tons in 2Q15 (+3.2% QoQ and +7.3% YoY). The production growth is mostly attributable to the stronger demand from the Company’s alumina refineries and third parties.
  • UC RUSAL management expects flat YoY aluminium production volumes in 2015. The Company does not plan restarting of aluminium smelters idled in 2013. UC RUSAL considers reducing its capacity by up to 200kt pa over next 12 months through implementation of the active maintenance capex management program envisaging optimization of scheduled maintenance on pot lines.
Key operating data1   2Q15   1Q15  

Change,%(QoQ)

  2Q14  

Change,%(YoY)

(‘000 tons) unless otherwise

indicated

  Aluminium 908 900 0.8% 900 1.1% Alumina 1,818 1,808 0.6% 1,804 0.8% Bauxite 3,223 3,124 3.2% 3,003 7.3% Nepheline 1,040 1,066 (2.4%) 1,229 (15.3%) Aluminium foil and packaging

products

22 22 (1.6%) 23 (3.6%)   Sales price, US$/tonne     2Q15   1Q15   Change, %(QoQ)   2Q14   Change, %(YoY)   Realized price 2,124 2,299 (7.7%) 2,114 0.4% Sales volumes, mt 880 9351 (5.1%) 893 (0.6%)  

1 Information on sales volumes and realized sales price is preliminary and will be updated in 2Q15 financial results announcement expected to be issued on 27 August 2015.

Aluminium production results

(‘000 tons) unless

otherwise indicated

    Interest   2Q15   1Q15   Change, %(QoQ)   2Q14   Change, %(YoY)   Russia (Siberia) Bratsk aluminium smelter 100% 251 248 1.0% 251 0.1% Krasnoyarsk aluminium

smelter

100% 251 250 0.6% 250 0.5% Sayanogorsk aluminium smelter 100% 131 131 0.5% 127 3.2% Novokuznetsk aluminium

smelter

100% 52 51 1.4% 52 (0.7%) Irkutsk aluminium smelter 100% 102 101 1.0% 98 4.2% Khakas aluminium

smelter

100% 72 71 1.5% 72 0.3%   Russia — Other Bogoslovsk aluminium

smelter

100% — — — — — Volgograd aluminium

smelter

100% — — — — — Urals aluminium smelter 100% — — — — — Nadvoitsy aluminium

smelter

100% 3 3 0.1% 3 2.8% Kandalaksha aluminium

smelter

100% 17 16 1.7% 16 3.2% Volkhov aluminium

smelter

100%

— — — —   Sweden Kubikenborg Aluminium

(KUBAL)

100% 28 29 (1.7%) 30 (4.4%)   Nigeria ALSCON 85% — — — — —

 

 

 

 

  Total production 908 900 0.8% 900 1.1%

 

 

 

Alumina production results

(‘000 tons)2 unless

otherwise indicated

    Interest   2Q15   1Q15   Change, %(QoQ)   2Q14   Change, %(YoY)   Ireland Aughinish Alumina 100% 476 488 (2.5%) 495 (3.8%)   Jamaica Alpart Windalco* (Ewarton and

Kirkvine Works)

100% 143 149 (3.8%) 120 19.2%   Ukraine Nikolaev Alumina Refinery 100% 362 352 2.6% 363 (0.5%)   Italy Eurallumina 100% — — — — —   Russia Bogoslovsk Alumina

Refinery

100% 239 220 9.0% 235 1.6% Achinsk Alumina Refinery 100% 222 224 (1.1%) 231 (3.9%) Urals Alumina Refinery 100% 193 190 1.6% 193 (0.1%) Boxitogorsk Alumina

Refinery

100% — — — — —   Guinea Friguia Alumina Refinery 100% — — — — —   Australia (JV) Queensland Alumina Ltd.3 20% 184 185 (0.5%) 167 10.0% ---- --- ---   Total production 1,818 1,808 0.6% 1,804 0.8% ======= ===== ======  

• The operating data in the table is presented on equity-adjusted basis. The Company controlled 93% of Windalco during 2014 and consolidated 100% stake in Windalco in December 2014.

2 Calculated based on the pro rata share of the Company´s (and its subsidiaries´) ownership in corresponding alumina refineries.

3 Pro-rata share of production attributable to UC RUSAL.

Bauxite mining

(Kt Wet)4 unless

otherwise indicated

    Interest   2Q15   1Q15   Change, %(QoQ)   2Q14   Change, %(YoY)   Jamaica Alpart 100% — — — Windalco* (Ewartonand

Kirkvine)

100% 478 513 (6.8%) 464 3.1%   Russia North Urals 100% 661 684 (3.5%) 639 3.4% Timan 100% 965 772 25.0% 721 33.8%   Guinea Friguia 100% — — — — Kindia 100% 856 863 (0.8%) 832 2.9%   Guyana Bauxite Company of

Guyana Inc.

90% 263 291 (9.7%) 346 (24.1%) ---- --- ----   Total production 3,223 3,124 3.2% 3,003 7.3% ======== ====== =======  

* The operating data in the table is presented on equity-adjusted basis. The Company controlled 93% of Windalco during 2014 and consolidated 100% stake in Windalco in December 2014.

4 Calculated based on pro-rata share of the Company’s ownership in corresponding bauxite mines and mining complexes. The total production of the Company’s fully consolidated subsidiaries, Timan and Bauxite Company of Guyana Inc., are included in the production figures, notwithstanding that minority interests in each of these subsidiaries are held by third parties.

Nepheline production results

(Kt Wet) unless otherwise

indicated

    Interest   2Q15   1Q15   Change, %(QoQ)   2Q14   Change, %(YoY)   Kiya Shaltyr Nepheline Syenite 100% 1,040 1,066 (2.4%) 1,229 (15.3%) ---- --- ----   Total production 100% 1,040 1,066 (2.4%) 1,229 (15.3%) ======== ====== =======  

Foil and packaging production results

The aggregate aluminium foil and packaging material production of the Company’s plants decreased by 1.6% QoQ to 22 thousand tons in 2Q15 and decreased by 3.6% in comparison with 2Q14, mainly due to decreased demand.

The table below shows the contribution from each facility.

(‘000 tons) unless

otherwise indicated

    Interest   2Q15   1Q15   Change, %(QoQ)   2Q14   Change, %(YoY)   Russia Sayanal 100% 10 10 (2.0%) 10 (6.5%) Ural Foil 100% 4 4 (1.1%) 5 (14.7%) Sayana Foil 100% 0.8 0.6 30.2% 0.7 12.7%   Armenia Armenal 100% 8 8 (3.8%) 7 6.6% ---- --- ---   Total production 22 22 (1.6%) 23 (3.6%) ======= ===== ======  

Other business

The Company’s aggregate output from its non-core business has shown multidirectional dynamics:

• Secondary alloys output increased by 1.7% QoQ to 6,209 tons in 2Q15 and increased by 0.8% in comparison with 2Q14.

• Silicon volumes increased by 2.8% QoQ to 15,348 tons in 2Q15 and increased by 17.3% in comparison with 2Q14.

• Powder production increased by 4.6% QoQ to 4,594 tons in 2Q15 and decreased by 26.1% in comparison with 2Q14.

• The cathodes and fluorides production facilities were mothballed as part of curtailment of inefficient production capacity in 2013.

(tons) unless otherwise indicated     2Q15   1Q15   Change, %(QoQ)   2Q14   Change, %(YoY)   Secondary alloys 6,209 6,108 1.7% 6,158 0.8% Cathodes 0 0 — 0 — Silicon 15,348 14,929 2.8% 13,083 17.3% Powder 4,594 4,392 4.6% 6,216 (26.1%) Fluorides 0 0 — 0 — Coal (50%) (Kt)5 3,121 4,709 (33.7%) 3,425 (8.9%) Transport (50%)6 (Kt of

transportation)

1,234 1,449 (14.8%) 1,533 (19.5%)  

5 The aggregate coal production attributable to the Company´s (and its subsidiaries´) 50% shareholding of LLP Bogatyr Komir.

6 The aggregate coal, sand and iron ore transportation attributed to the Company’s 50% shareholding of LLP Bogatyr Trans.

Coal production results

The aggregate coal production attributable to the Company´s (and its subsidiaries´) 50% shareholding of LLP Bogatyr Komir decreased by 33.7% QoQ to 3,121 thousand tons in 2Q15 and decreased by 8.9% in comparison with 2Q14. The decrease in volume in 2Q 2015 as compared to 1Q 2015 and as compared to 2Q 2014 was due to lower sales of coal to the Russian customers resulting from softening regional demand and higher competition. The demand softening on the Russian market was partially offset by the increased demand for thermal coal in Kazakhstan.

Transportation results

The Company owns 50% share in LLP Bogatyr Trans. The aggregate coal, bauxite and limestone volumes transported by LLP Bogatyr Trans by railway decreased by 14.8% QoQ to 1,234 thousand tons in 2Q15 and decreased by 19.5% as compared to 2Q14, as the result of the decrease of coal transportation in Russia.

United Company RUSAL Plc

Aby Wong Po YingCompany Secretary

 

28 July 2015As at the date of this announcement, the executive Directors are Mr. Oleg Deripaska, Mr. Vladislav Soloviev and Mr. Stalbek Mishakov, the non-executive Directors are Mr. Maxim Sokov, Mr. Dmitry Afanasiev, Mr. Len Blavatnik, Mr. Ivan Glasenberg, Mr. Maksim Goldman, Ms. Gulzhan Moldazhanova, Mr. Daniel Lesin Wolfe, Ms. Olga Mashkovskaya and Ms. Ekaterina Nikitina, and the independent non-executive Directors are Mr. Matthias Warnig (Chairman), Dr. Peter Nigel Kenny, Mr. Philip Lader, Ms. Elsie Leung Oi-sie and Mr. Mark Garber and Mr. Dmitry Vasiliev.

All announcements and press releases published by the Company are available on its website under the links http://www.rusal.ru/en/investors/info.aspx, http://rusal.ru/investors/info/moex/ and http://www.rusal.ru/en/press-center/press-releases.aspx, respectively.

United Company RUSAL Plc