Aluminium giant Rusal posts Q3 profit jump
Hong Kong (AFP) - Rusal, the world's largest aluminium producer, said it had swung to a profit in the third quarter from a loss a year ago thanks to rising metal prices and cost reductions.
The Hong Kong-listed company said it saw a net profit of $220 million in the three months ending September 30, compared with a $172 million loss for the same period last year.
In a statement the Moscow-based firm said the reversal came on the back of procurement savings and cost cutting, with chief executive Oleg Deripaska adding that increasing demand was spurring the sector.
"Healthy consumption growth coupled with production curtailments have led to a deficit in the global market," excluding China, he said.
Cost controls and increasing margins had also helped produce "significantly improved third-quarter results" he added.
Rusal's results were the second consecutive quarterly profit jump after it posted a $116 million profit in June which bounced it back into the black for the first time since early 2013.
Over nine months, the company saw a 0.2 percent growth in profits, compared with an eight percent loss for the same period in 2013.
Adjusted earnings before interest, tax, depreciation and amortisation in the third quarter rose to $470 million from $220 million in previous three months.
Revenue rose 9.6 percent quarter-on-quarter.
Deripaska said "the market will remain in deficit for the forseeable future" and predicted global aluminium consumption would reach 66 million tonnes in 2018, compared with 52 million tonnes in 2013.
