Rusal hits record profits in Q2

Russian exporting companies benefit from the devaluation of the ruble. The world's largest aluminum producer, Rusal, achieved a record profit with an increase of 158 percent.

Russian aluminum producer Rusal achieved these results thanks to a decline in the value of the ruble against the dollar and a significant reduction in costs. During the quarter, adjusted operating income (EBITDA) rose 158 percent to $ 568 million.

The world's largest aluminum producer has warned that the price of aluminum, already hitting six-year lows, remains under pressure due to oversaturation from incoming exports from China and new proposals from the Middle East and India.

Rusala predicts global supply will outstrip demand by 277,000 tonnes in 2015, but that is lower than US rival Alcoa's forecast of a 760,000 tonne surplus this year. The company has expressed doubts that Chinese manufacturers will increase exports of semi-finished aluminum products such as plates for window frames and beer cans, since these exports are already unprofitable.

Rusal's adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose to $ 568 million in the three months ended June 30, from $ 220 million in the same period a year earlier, beating eight analysts' forecasts of about $ 467 million.

Adjusted net income plus Rusal's share of Norilsk Nickel earnings was $ 363 million. As a result, net debt fell to $ 8 billion by the end of June from $ 8.6 billion at the end of March. Rusal's dividend issue is under consideration.

According to CEO Vladislav Solovyov, Rusal plans to increase the share of high value-added products from 46 to 60 percent over the next three years. The company also expects to increase the volume of supplies of its products to the domestic market to 2 million tons by 2020 from the current 800 thousand tons.