https://newsletter.mw.creamermedia.com
Aluminium|Copper|Energy|Infrastructure|supply-chain|Sustainable|Technology|Infrastructure
Aluminium|Copper|Energy|Infrastructure|supply-chain|Sustainable|Technology|Infrastructure
aluminium|copper|energy|infrastructure|supply chain|sustainable|technology|infrastructure

Aluminium giant Rusal posts near three-fold profit jump as costs drop

14th March 2025

By: Reuters

  

Font size: - +

Russia's Rusal on Friday reported a near three-fold jump in its annual earnings, reflecting lower production costs and higher prices for aluminium.

Hong Kong-listed Rusal, the world's largest aluminium producer outside China, is under pressure from the widespread consequences of Western sanctions against Russia over its actions in Ukraine.

Rusal's shares, trading near their highest since before Russia sent its army into Ukraine in February 2022, jumped more than 5% before paring gains. Rusal's shares have been on a sharply upward trend since mid February.

While there are no direct sanctions on Rusal, some Western consumers are shunning new deals with Russian-made metal. In April 2024, the London Metal Exchange banned deliveries of newly-produced Russian aluminium, copper and nickel to LME-registered warehouses to comply with US and UK sanctions.

Rusal reported net profit of $803 million for the year ended December 31, 184.8% higher than the year-ago period. Rusal's revenue fell by 1.1% to $12.08 billion while production costs dropped 6.8% to $2 025 per metric ton.

Rusal flagged that the transition towards greener forms of energy accelerated last year and noted that consumption of aluminium in the transportation industry remained the largest in 2024

"The EV market is expanding due to stricter emissions regulations, government incentives, and advancements in battery technology," Rusal said in a filing to the Hong Kong exchange.

The company — one of the few Russian firms left on any of the world's exchanges — noted that the development of charging infrastructure and an increase in consumer demand for sustainable transportation are fuelling expansion in the EV market.

Total sales of aluminium decreased by 7.1% to 3.86-million metric tons in 2024 and production rose by 3.7% to 3.99-million tons.

Rusal warned that ongoing geopolitical uncertainty, including sanctions imposed by the United States, European Union and other countries, may result in "significant limitations" for sales channels, the availability of raw materials for production and its supply chain.

Since 2022, Rusal has been seeking to diversify sales towards Asian markets, but Europe still accounts for more than one fifth of revenue.

In February the EU included an aluminium ban in its 16th sanctions package against Russia but introduced a quota for aluminium imports from Russia of 275,000 tons for a 12-month period to ease the transition.

Edited by Reuters

Comments

Showroom

Tractor & Grader Supplies
Tractor & Grader Supplies

Tractor & Grader Supplies (TGS™): Your Trusted, Genuine Source for New Replacement Parts for Earthmoving, Construction and Mining Machinery

VISIT SHOWROOM 
Actom
Actom

Your one-stop global energy-solution partner

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (14/03/2025)
14th March 2025 By: Martin Creamer
Magazine round up | 14 March 2025
Magazine round up | 14 March 2025
14th March 2025

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.113 0.187s - 145pq - 2rq
Subscribe Now