News

Advanced Search

ALROSA Turns a Profit in 3Q

Nov 21, 2016 4:09 AM   By Rapaport News
Email Email Print Print Facebook Facebook Twitter Twitter Share Share
RAPAPORT...  ALROSA swung to a profit in the third quarter driven by significantly higher rough diamond demand from last year.

Total revenue from diamond sales climbed 83 percent to $982.2 million (RUB 63.02 billion), boosted by a 91 percent rise in revenue to Belgium and an 81 percent increase to India. Cost controls helped rein in production expenses and aided the company’s return to the black in the three months that ended September 30, the Russian-based miner said.

“The recovering demand for diamonds has driven up sales volumes and reduced the remaining diamond inventories,” said chief executive officer Andrey Zharkov (pictured). “The threefold growth in net cash flow and net profit creates enough liquidity to increase dividend payments and early debt repayment.”

ALROSA’s inventories declined 7 percent to $831.5 million between December 31 and September 30.

Inventories increased by 8 million carats in 2015 as diamond manufacturers bought less rough in the second half to enable them to work down polished stockpiles. They resumed rough buying this year after polished inventory levels normalized aided by lower manufacturing and steady holiday sales.

Sales to Belgium advanced to $452.8 million and revenue from India climbed to $172.5 million. Profit came in at $414 million compared with a loss of $236.6 million a year ago. Group revenue jumped 70 percent to $1.07 billion.

ALROSA’s results reflect a recovery in the global demand for rough diamonds, and are in line with De Beers sales from nine sights in 2016 increasing 34 percent from a year earlier.

ALROSA’s sales grew 48 percent to $3.98 billion in the first nine months of the year, while profit more than tripled to $1.82 billion from $501.1 million a year ago.
Tags: Alrosa, andrey zharkov, mining, Rapaport News, rough demand, Rough Diamonds, rough sales, Russia
Similar Articles
© Copyright 1978-2018 by Martin Rapaport. All rights reserved. Index®, RapNet®, Rapaport®, PriceGrid™, Diamonds.Net™, and JNS®; are TradeMarks of Martin Rapaport.
While the information presented is from sources we believe reliable, we do not guarantee the accuracy or validity of any information presented by Rapaport or the views expressed by users of our internet service.