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ALROSA 3Q Sales -3.5%, Loss Widens 47%

Nov 25, 2015 5:43 AM   By Rapaport News
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RAPAPORT... ALROSA reported revenue decreased 3.5 percent to $619.4 million (RUB 40.6 billion) in the third quarter that ended September 30. The Russian miner’s loss increased 47 percent to $231.2 million, driven partly by the depreciation of the ruble against the U.S. dollar. The foreign-exchange cost was $508.5, the company said in a statement November 25.

The U.S. dollar strengthened 17 percent against the ruble between December 31, 2014, and September 30, 2015, the statement said, citing official exchange rates from the Central Bank of the Russian Federation.

The company’s diamond sales decreased 4.5 percent to $524.7 million, with exports rising 4 percent to $454 million and domestic sales falling 11 percent to $64 million.

Sales to Belgium slid 23 percent to $232.6 million, but the country remains ALROSA’s largest market. Business in the United Arab Emirates roughly doubled to $25.1 million and U.S. sales advanced 55 percent to $6.4 million. Sales to customers in the Russian Federation decreased 4.2 percent to $156.2 million. Other major markets bought an increased value of goods: Indian sales grew 22 percent to $93.3 million, Israeli revenue rose 12 percent to $69.8 million and sales to customers in China surged 47 percent to $23.9 million.

Inventories Expand

Diamond inventory expanded 48 percent to $724.7 million, while total inventory increased 35 percent to $1.3 billion.

"We see the normal level of inventories at 12 million to 14 million carats, currently, the inventories stand in excess of 20 million,” Ilya Ryashchin, first vice president of the company told analysts in a conference call following the results announcement. He added that if rough purchases didn’t return to normal levels, ALROSA would “probably re-consider production volumes.”

During the first nine months of 2015, revenue increased 17 percent to $2.6 billion, while profit more than doubled to $491.4 million.
Tags: Alrosa, earnings, mining, Rapaport News, Russia
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