Al­rosa H1 Net Profit At RUB 48.9bn

Solitaire - - SPECTRUM -

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.

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