|
RAPAPORT... ALROSA reported that revenue increased 27 percent year on year to $2.83 billion (RUB 104.8 billion) for the first half that ended on June 30. Cost of sales rose 28 percent to $1.4 billion (RUB 50.1 billion). The company's profit jumped 58 percent to $624.4 million (RUB 23.1 billion) and earnings per share increased 57 percent to RUB 3.07. Diamond production during the period declined 7 percent to 15.9 million carats.  ALROSA sold 21.1 million carats of diamonds during the first half, representing a 10 percent increase from 2013. The sale of gem-quality rough diamonds rose 27 percent to $2.41 billion (RUB 89.019 billion). ALROSA explained that, on the whole, there was a 5 percent increase in the average carat price due to changes in the mix of goods offered, but "due to market conditions" the average price fell 1 percent, leaving the average price per carat up 4 percent to $172 for the first half. By quarter, however, the average selling price of gem-quality rough diamonds in the first three months of the year, ending in March, fell 2 percent year on year to $154.60 per carat, but in the second quarter, ALROSA's average selling price jumped 15.5 percent to $199.80 per carat. The mining giant reported free cash flow of $557 million (RUB 20.6 billion) at the close of the first half, which was more than twice the amount it reported one year ago. Fyodor Andreev, ALROSA's CEO, said, “In the first half of 2014, the company delivered its best results ever. One of the drivers behind this outstanding performance was the market environment, with the Russian ruble weakening against the dollar as the key contributor to the revenue growth. To capture the benefits of the ruble devaluation, the company engaged in additional diamond sales from inventory as a way to improve the group’s cash flow position and, specifically, to generate additional liquidity for Eurobonds redemption in the fourth quarter of 2014.”
|