UC Rusal announces 2Q17 operating results
UC RUSAL, a leading global aluminium producer and part of En+ Group, announces operating results for the second quarter 2017
- Aluminium production in 2Q17 totaled 921 thousand tonnes (+1.2% QoQ), with Siberian smelters representing 94% of total aluminium output. The total production dynamics is largely explained by the number of calendar days in the periods (91 days in 2Q17 and 90 days in 1Q17). Smelters utilization remained on average at a high of 95%.
- In 2Q17 aluminium sales totaled 1,002 thousand tonnes (+1.7% QoQ).
- In 2Q17 sales of value added products increased strongly QoQ by 13.1% to 493 thousand tonnes from 436 thousand tonnes in 1Q17. As a result the share of sales of VAP in total sales grew to 49.2% in 2Q17 in comparison with 44.3% in 1Q17. The strong growth of VAP sales is in line with Company’s strategy of increasing the share of respective product mix and it was achieved due to continuous upgrades in relevant capacities and achieved productivity gains.
- In 2Q17 the average aluminium realized price increased by 7.1% QoQ to USD2,087/t. The increase was driven by positive dynamics in London Metal Exchange (“LME”) QP component (+6.5% QoQ to USD1,913/t) and average realized premium component growth (+13.7% QoQ to USD174/t).
- In 2Q17, total alumina production increased by 2.1% QoQ, totaling 1,928 thousand tonnes. Russian operations accounted for 36% of total output. Production volumes at refineries were largely in line with production plans. Seasonal repair works performed at Windalco, Auginish and Bogoslovsk were offset by production performance at Achinsk and Urals.
- Capacity upgrades which were completed at Nikolaev and Urals refineries were largely behind the YoY production increase at refineries in 2Q17.
Bauxite and nepheline ore
- In 2Q17, bauxite output totaled 3,090 thousand tonnes (+7.7% QoQ). Nepheline output increased by 5.2% QoQ to 1,111 thousand tonnes due to seasonal factor. Production volumes at Timan and Kia Shaltyr (nepheline ore) increased by 22.7% and 5.2% QoQ to meet the production plan needs of the Urals and Achinsk alumina refineries and seasonal factor respectively. Kindia production volumes increased by 4.6% QoQ in 2Q17 which is largely explained by repairs and purchasing of rolling stock. Bauxite Company of Guyana production decreased by 2.4% QoQ.
For further information please see UC Rusal's press release.