Rusal reported profit in Q1

Rusal made a net profit of $ 228 million in Q1 2015, up from a loss of $ 246 million in the same period last year, according to a report on the Hong Kong Stock Exchange. Rusal's profit was driven by higher LME aluminum prices, ruble depreciation and cost control, although the largest aluminum producer warned that low prices could create problems in the future.

The cost of aluminum in the first quarter of 2015 decreased by 17.5 percent compared to a year earlier to $ 1,437 per ton. Despite the fact that the cost of aluminum was negatively affected by the rise in electricity prices, railway tariffs and the cost of raw materials in rubles. However, these factors were neutralized by increasing production efficiency and lowering the exchange rates of the ruble and hryvnia against the US dollar.

“The company's first quarter 2015 results show that our strategy to improve efficiency and expand our high value-added product portfolio is paying off,” CEO Vladislav Soloviev said in a statement to the exchange. The company's revenues rose 16.7 percent to $ 2.48 billion on higher aluminum sales, while expenses were cut 7.5 percent year-on-year, driven in part by exchange rates, the Moscow-based firm said.

During the reporting period, the company also reduced its net debt by $ 213 million, which helped to reduce the debt burden ratio and ensured a decrease in the interest rate margin since June 2015. “The main factors contributing to our results were our supply discipline and cost control, supported by amortization of local currency,” Soloviev said.