Moscow, 30 April 2019 – RUSAL, a leading global aluminium producer, announces its operating results for the first quarter 2019 (“1Q19”).
Key highlights
Aluminium
Aluminium production
in 1Q19 totaled 928 thousand tonnes (-1.6% quarter-on-quarter (“QoQ”)), with Siberian smelters representing 93% of total aluminium output;
In 1Q19, aluminium sales amounted to 896 thousand tonnes. In 1Q19 sales of value added products (VAP3) decreased to 259 thousand tonnes (-22.2% QoQ). This period was significantly challenged by short OFAC4. General License extensions, as the Sanctions5 were lifted only on 27 January 2019;
In 1Q19, the average aluminium realised price6 decreased by 7.8% QoQ to USD1,949/t. The decrease was driven both by the London Metal Exchange (“LME”) QP7 component (-7.9% QoQ to USD1,849/t) and average realised premium component (-7.4% QoQ to USD100/t). The decline in premiums during 1Q19 is primarily attributed to decrease of VAP share in product sales mix due to external market drivers related to the Sanctions.
Alumina
In 1Q19, total alumina production decreased by 1.3% QoQ, to 1,932 thousand tonnes. The Company’s Russian operations accounted for 35% of the total output.
Bauxite and nepheline ore
In 1Q19, bauxite production increased by 3.0% QoQ, to 3,831 thousand tonnes. Nepheline production increased by 23.5% QoQ, to 1,009 thousand tonnes following completion of maintenance works carried out at the mine in 4Q18.
Ukrainian metal