Rusal swings back into the black again

Russia’s Rusal, the world’s largest aluminium producer, said yesterday it swung back to the black in the second quarter as sales increased, and added it plans to launch depositary receipts in Russia later this year.

In total, for the six months to the end of June Rusal produced a net profit of $1.27bn (£825m), compared with a net loss of $868m a year ago. Revenue rose 42 per cent to $5.32bn from $3.76bn.

The firm put the rise down to higher prices for the lightweight metal at the start of the year.

Rusal, which has the Russian oligarch Oleg Deripaska as its chief executive, said it expects these conditions to continue due to strong demand from China, the US, Europe and Japan.

Deripaska said: “[The] continued recovery in global markets should generate good opportunities for growth in demand for aluminium as it is a base metal required to support key industries and growing economies.”

Rusal enjoys a competitive advantage over China’s Chalco and other rivals due to favourable tax rates in Russia.

EuroNext-listed Rusal, which also listed on the Hong Kong stock exchange in January after raising $2.2bn, said it intends to launch a Russian depository receipts programme to be listed on MICEX Stock Exchange and Russian Trading System Stock Exchange by the end of 2010.

Finally, Rusal also said it had appointed Evgeny Kornilov, formerly chief financial officer of Russian retail group X5, as its chief financial officer. Tatyana Soina, who previously served as chief financial officer of Rusal, will head its newly formed department of control, internal audit and business coordination.