UC RUSAL announced 2011 third quarter results

UC RUSAL, the world’s largest aluminum producer, announced its results for the third quarter ended 30 September 2011.

• Revenue increased by 16.8% to USD 3,162 million for the three months ended 30 September 2011, as compared to USD 2,708 million for the same period of 2010, mainly due to an increase in sales prices and a record level of realized premiums of USD 164 per ton over the LME aluminum price.

• Adjusted EBITDA increased by 25.0% to USD 705 million for the three months ended 30 September 2011 as compared to USD 564 million for the three months ended 30 September 2010. Adjusted EBITDA margin was 22.3% and 20.8% for the three months ended 30 September 2011 and 2010, respectively, maintaining its premier position in the industry.

• Adjusted Net Profit for the three months ended 30 September 2011 increased more than twice to USD 290 million as compared to USD 143 million for the three months ended 30 September 2010 following the strong operating results.

• Net profit was USD 432 million for the three months ended 30 September 2011 as compared to USD 29 million for the three months ended 30 September 2010.

• Continuing decrease of the average-weighted energy tariff (a drop by 6% in the third quarter of 2011 as compared to that of the second quarter of 2011).

• Completed refinancing of the debt portfolio with maturity extension and interest margin reduction which allowed for operational and financial flexibility, dividend payments and the lifting of capex restrictions.

• BEMO project1 well on track with all nine turbines delivered on site and five of them installed.

• RUB 40 billion 15-year non-recourse project financing for Taishet aluminum smelter arranged and capital spending restarted in the third quarter of 2011.

Commenting on the third quarter results, Oleg Deripaska, CEO of RUSAL said:

“Market uncertainty and anticipation of another global economic downturn have put significant pressure on the aluminum industry in the third quarter of 2011. Despite the volatile metal prices, UC RUSAL has nevertheless achieved impressive results during the period. Solid production results, enhanced cost efficiency and client oriented marketing efforts, coupled with a focus on value-added products, have enabled us to end the period with adjusted EBITDA increasing by 25.0% and adjusted net profit more than doubling period-on-period. UC RUSAL has maintained its leading position in industry with an adjusted EBITDA margin of 22.3%”.