Rusal posts FY 2010 net profit of $2.867 billion

Rusal posts FY 2010 IFRS net profit of $2.867 billion
Russian aluminium producer, Rusal, has posted a FY 2010 net profit of $2.867 billion under IFRS.

The net result is sharply higher than the $821 million net profit posted for FY 2009, with adjusted EBITDA up 335% year on year to $2.597 billion, as FY 2010 revenues rose 34.5% to $10.979 billion.

The company said the results reflected a rebound in global aluminium prices and increased sales volumes, coupled with a 66% increase in the value of Rusal’s 25% stake in Norilsk Nickel over the course of 2010, with CEO Oleg Deripaska hailing the rebound in financial performance.

“2010saw UC RUSAL delivere xcellent financial performance withboth revenue and profit sshowing substantial gains on our 2009 results. Our EBITDA margin has risen to23.7% and0 earnings per share have increasedt hree 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 Companyto remain as the world’s leading aluminium producer at the end of 2010.”

Rusal highlighted its reduction in net debt to $11.472 billion as well as the recent restarts of construction on plants in Jamaica, and in Russia with CEO Deripaska adding these underline a buoyant outlook.

“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.”