RapNet


Rapaport News

 

Mining

 

Advanced search
Latest Articles
Videos
Features
News
Mining
Rough Markets
Polished Markets
Manufacturing
Retail

Revenue and Profit Decline for Alrosa

Strong Russian ruble dents miner’s results.
Mar 18, 2018 4:52 AM   By Rapaport News
Print Print Facebook Facebook Twitter Twitter Share Share


RAPAPORT...
Alrosa’s revenue and profit fell in 2017, due to a shift to lower-value rough-diamond sales, and a weaker dollar.

Revenue for the year declined 14% to $4.68 billion (RUB 269.71 billion), while profit slipped 41% to $1.36 billion (RUB 78.62 billion), the miner said last week. The company’s diamond sales plunged 16% to $4.31 billion (RUB 248.31 billion). The miner derived its remaining revenue from transportation, gas and social infrastructure.

Sales to Alrosa’s top three regions also decreased, as Belgian revenue fell 12% to $2.19 billion (RUB 125.89 billion), domestic sales inched down 7% to $861 million (RUB 49.60 billion), and India sales slid 21% to $690.3 million (RUB 39.77 billion).

“Although production and sales volume increased, Alrosa’s 2017 financial results were affected by a number of…factors, especially the stronger ruble and the product-mix changes,” said Alrosa CEO Sergey Ivanov.

The ruble strengthened 5% against the dollar in 2017. Alrosa sells diamonds in dollars, but reports results and pays expenses in rubles, meaning that a stronger ruble in comparison to the dollar leads to lower sales and profit figures.

Additionally, the miner saw a 3% rise in its expenses for the year, “driven by production and sales growth, contribution to the [Diamond Producers Association] and losses from idle production facilities of the Mir underground mine,” it explained in a statement. Operations at Mir were suspended in August after a flood at the mine claimed eight lives.

The company has been making an effort to cut costs, and, despite the rise in expenses, the miner said it was enjoying some success in enhancing efficiency.

Alrosa earned $13.5 million at its most recent sale, an auction of rough and polished stones in Hong Kong. The Russia-based miner sold 112 special-size stones weighing a combined 1,787 carats.

The company also made early repayments of $450 million in bank loans, using money it received from auctioning off its gas assets in February.
Tags: Alrosa, diamond sales, Dpa, gas, miner, Mir, profit, Rapaport News, revenue, Sergey Ivanov., social infrastructure, special-size stones, transportation
Similar Articles
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First



Call Us: 1-702-893-9400
Member License Agreement   RapNet Trading Rules & Code of Conduct    Privacy Policy  
  
twitter twitter
About Rapaport
Advertise with us