Home / Metal News / Rusal recorded a net loss in the first half of the year. Aluminum prices are expected to be weak in 2020.

Rusal recorded a net loss in the first half of the year. Aluminum prices are expected to be weak in 2020.

iconAug 14, 2020 07:20
Source:Mandarin Finance and Economics
[Rusal reports net loss in the first half expected to be weak in 2020] Rusal (Rusal), a Russian aluminum giant, announced on Thursday that its recurrent net loss in the first half of 2020 totaled $76 million, making a profit of $666 million in the same period last year as the novel coronavirus outbreak hurt demand. Rusal reported a profit before interest, tax, depreciation and amortization of $219 million for the six months ended June 30, down 58.5 per cent from a year earlier, while revenue fell 15 per cent to $4 billion.

SMM: Rusal (Rusal), a Russian aluminum giant, announced on Thursday that its recurrent net loss in the first half of 2020 totaled $76 million, while the company made a profit of $666 million in the same period last year as the novel coronavirus outbreak hurt demand.

Hong Kong-listed Rusal, the world's largest aluminium producer outside China, said it expected global aluminum prices to remain depressed in 2020.

Rusal reported a profit before interest, tax, depreciation and amortization of $219 million for the six months ended June 30, down 58.5 per cent from a year earlier, while revenue fell 15 per cent to $4 billion.

Some analysts have warned that Rusal's financial results for the first half of 2020 will be weak because of lower aluminum prices, although Rusal has received a dividend from mining giant Norilsk Nickel (Norilsk Nickel). Rusal owns 27.8% of Norilsk Nickel.

Rusal, which had net debt of $6 billion at the end of June, relied on these dividend payments during tough economic years, but these payments are becoming the subject of debate in Interros Holding, Norilsk's largest shareholder. Interros Holding manages the businessman Vladimir? The assets of Potanin (Vladimir Potanin).

There has always been a shareholder conflict between the two companies in the scale of dividend payment, management and strategy.

Potanin is willing to reduce Nornickel's dividend because of the novel coronavirus epidemic and a massive fuel leak at Nornickel's Arctic power plant in May.

Nornickel said earlier this week that Nornickel's net profit for the January-June period fell to $45 million as the company set aside $2.1 billion for potential environmental damage claims after the oil spill.

Click to understand and sign up for the 2020 China Automotive New Materials Application Summit Forum.

Please fill in your personal information on the last page and the meeting staff will contact you later!

Aluminum
electrolytic aluminum
output
production capacity

For queries, please contact Michael Jiang at michaeljiang@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

Related news