Profits jump at aluminium producer Rusal despite sanctions against Russia
Russian aluminium producer Rusal reported a jump in net profit to USD803 million for the year to the end of 2024.
The company, which is listed on the Hong Kong stock exchange, acknowledged the effect of global sanctions on the company, as Russia continues to wage war on Ukraine, global price volatility for raw materials and “restrained growth in demand for aluminium amid weak economic development and high interest rates”.
In its report to shareholders, it stated: “Expansion of international sanctions against Russian aluminium and supply chains disruptions made the main contribution to maintaining the overall unfavourable market environment for the Company.”
However, profits increased 184.8% compared with 2023, but revenue had fallen 1.1% from USD12.2 billion in 2023 to USD 12.1bn in 2024.
Sales of primary aluminium and alloys fell by USD403 million, or 4.0%, to USD9.7bn in 2024, which Rusal attributed to a decrease in volumes. But sales of aluminium foil and other products increased 6.4% to USD585m in 2024.
The company noted that global aluminium consumption in the packaging sector was 16.4%, “driven by the expansion of production capacity, the launch of new plants, and strong consumer demand”.
Although there are no direct sanctions on the company, the London Metal Exchange banned deliveries of newly-produced Russian aluminium, copper and nickel to LME-registered warehouses to comply with US and UK sanctions, according to news reports.
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