Rusal trebles profits after bumper year

 
City A.M. Reporter
RUSAL, the world’s top aluminium maker, said its 2010 net profit more than tripled, beating forecasts, and expects strong global demand for the light metal to continue this year.

RUSAL shares rose more than four per cent to their highest level in more than a month, outperforming a 0.4 per cent rise in the broader market .

“The emerging markets of China, Brazil, India and Russia will be driving the growth of aluminium consumption in 2011,” RUSAL said in a statement to the Hong Kong stock exchange.

Prices for aluminium, used widely in the transport, packaging and building sectors, should remain supported by increasing demand for the metal as the global economy recovers, analysts say.

The Russian firm, listed in Hong Kong and Paris, forecast aluminium prices to continue to trade at around $2,500-2,600 (£1,556-£1,620) throughout 2011.

The group posted a net profit of $2.87bn last year, up from $821m in 2009.

Chief executive Oleg Deripaska said in a statement the company’s strong net profit growth was driven by significant increases in demand for aluminum and metal prices, and the company expects global demand for aluminium to grow eight per cent to 43.8m metric tons this year.

Rusal said it would not be investing in the forthcoming flotation of the commodities giant Glencore.