Rusal increased net profit almost in 3.5 times

UC Rusal, the world’s largest aluminium producer, announces its full year results for 2010.

Key highlights

Financial
Net profit of US$2,867 million for 2010 compared to net profit of US$821 million for 2009.
Revenue increased by 34.5% to US$10,979 million as a result of higher aluminium market prices, improved product mix and premiums.
Total investments in development of existing facilities and construction of new assets amounted to US$798 million.
Adjusted EBITDA increased by 335.7% to US$2,597 million due to increased weighted-average realised prices and sales volumes.
Adjusted EBITDA margin has returned to the pre-crisis level of 23.7%.
Net Debt reduced to US$11,472 million.

Investment
The market value of UC Rusal’s investment in OJSC MMC Norilsk Nickel increased by 66.8% in 2010. The market capitalisation of the investment exceeded US$11 billion as of 31 December 2010.

Positive outlook for the business
Restart of Ewarton Plant Work in 2010 and Kirkvine in Jamaica scheduled for 2011.
Restart of BEMO smelter construction in January 2011 backed by the project financing from VEB.
Restart of Taishet smelter construction is scheduled for 2011.

Commenting on the full year results, Oleg Deripaska, CEO of Rusal said: "2010 saw UC Rusal deliver excellent financial performance with both revenue and profits showing substantial gains on our 2009 results. Our EBITDA margin has risen to 23.7% and earnings per share have increased three times. This strong growth was driven by a significant increase in demand and prices for our metal which we were able to meet through productivity enhancement programs, enabling the Company to remain as the world’s leading aluminium producer at the end of 2010.

UC Rusal exceeded its 2010 debt repayment obligations and an extremely strong operating performance across the Company ensured a significant decrease to our Net Debt to EBITDA ratio and increased our strategic flexibility and development capabilities. This enabled us to respond to improving market conditions by launching new and restarting previously idled operations as well as moving ahead with our large-scale investment projects.

With an additional 1.3 million tonnes of technologically-advanced and environmentally friendly smelting capacity in the pipeline and further growth projects planned, UC Rusal is ideally positioned to take advantage of the encouraging outlook for aluminium prices and increasing consumer demand. I am confident that the year ahead will see the Company strengthen its world leadership position."