Alrosa H1 Net Profit At RUB 48.9bn
Alrosa said it earned a net profit of RUB 48.9 billion on revenues of RUB 155.6 billion in the first six months of 2017. Earnings before interest, tax, depreciation and amortisation (EBITDA) amounted to RUB 72.8 billion, and net cash flow was RUB 50.3 billion.
Sergey Ivanov, chief executive officer of Alrosa, said, “Weaker financial performance in H1 2017 versus H1 2016 was caused by the market and macroeconomic factors such as 18% ruble appreciation against the US dollar and a 15% drop in the average price of the diamonds sold as a result of changes in the diamond mix.
“By the end of 2016, the company had accumulated inventories of small-size rough diamonds that had not been purchased because of the monetary reform in India. These inventories were cleared in H1 2017 thanks to improved demand. In Q2 2017, the volumes and sales mix stabilised with the average price of diamonds sold growing by 20% quarter-on-quarter.”
Alrosa’s initial target of 39.2 million carats to be produced in 2017 remains unchanged as missing Mir production volumes will be set off by higher diamond output at other mines.