Regulatory News:
United Company RUSAL Plc (Paris:RUSAL) (Paris:RUAL):
Hong Kong Exchanges and Clearing Limited and The Stock Exchange
of Hong Kong limited take no responsibility for the contents of
this announcement, make no representation as to its accuracy or
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any loss howsoever arising from or in reliance upon the whole or
any part of the contents of this announcement.
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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150727006381/en/
United Company RUSAL Plc