Rusal returns to strong profit

Aluminium producer Rusal has revealed a vast improvement in profits in H1 2010, compared to the same time last year.

Net profit for the company soared to US$1.268bn in the first six months of this year, up from a net loss of US$868mn for the first half of 2009.

Sales also jumped by over 40% to US$5.3bn.

The strong results come after aluminium prices rose by around 49% in the first half of 2010 and global demand for the metal, particularly from emerging markets, increased.

Rusal’s chief executive officer Oleg Deripaska, tells GTR how the company achieved such strong results, and how they will be maintained: “These results reflect the significant improvements in our operational efficiency including the impact of various cost-saving initiatives and productivity enhancement programmes. As the industry outlook began to improve, we started to restore production at our facilities and also increased our capacity. Recessions are followed by active growth and dynamic development, which we need to be prepared for.”

Vladislav Soloviev, first deputy chief executive officer at Rusal, explains to GTR the qualities that helped the company pull through such a harsh economic environment: “The main competitive advantages are viability, competitiveness and ability to survive at all times, even difficult times, through managing your production costs.”

Furthermore, Deripaska offers an insight into which markets will lead the way for growth in the aluminium sector: “Asia is a key region for the aluminium industry and consumption, driven by China, is forecast to continue to grow. UC Rusal’s developing presence in the region will allow the company to capitalise on its competitive advantages, thereby achieving even stronger financial performance and value growth.”