Russian diamond producer, #Alrosa, has posted a FY 2017 net profit of RUB 78.6 billion under IFRS.
The world’s largest rough diamond producer said the net result, which was down on the FY 2016 net profit of RUB 133.5 billion reflected an appreciating Russian currency, sliding global prices for gem quality diamonds, and changes to its product mix.
Total FY 2017 revenues came to RUB 275.4 billion, down from 317.1 billion a year earlier, with EBITDA sliding over the same period from RUB 176.4 billion to RUB 126.9 billion.
CEO, Sergey Ivanov, highlighted the jump in production and sales volumes and a continued tight rein on production costs.
“Although production and sales volumes increased, ALROSA’s 2017 financial results were affected by a number of macroeconomic and market factors, especially the stronger ruble and the product mix changes. However, our efforts to enhance operational efficiency proved successful and, despite higher production and sales volumes, helped us maintain per unit costs at the 2016 level,”
The FY results came a day after Alrosa announced it had repaid USD $450 million in loans to Rosbank and Raiffeisenbank, following the sale of gas assets in February. The move brings its debt to USD $1.17 billion, but is expected to boost 2018 results through reducing interest according to CFO Alexey Philippovskiy.
“As part of the efforts to improve liquidity management, ALROSA repaid short-term bank loans for a total of USD 450 million ahead of schedule. The resulting savings on interest payments would amount to USD 9 million, positively impacting ALROSA’s financial performance in 2018,”