RUSAL Announces H1 2021 Interim Results
RUSAL announced its results for the six months ended 30 June 2021. RUSAL's production in the first six months of 2021 remained flat compared to 1H 2020 and amounted to 1,868 thousand tons of aluminium. Revenue increased to USD 5,449 million compared with USD 4,015 million in the first half of 2020 and USD 4,551 million in the second half of 2020, EBITDA amounted to USD 1,315 million (USD219 million and USD 652 million respectively). At the same time, the total cost of sales increased to USD 3,819 million compared with USD 3,520 million in H1 2020 and USD 3,592 million in H2 2020. Net profit amounted to USD 2,018 million, of which USD 1,124 million was accounted for by a non-cash item,- a share in Norilsk Nickel's profit.
In 1H2021, the gradual recovery of all key markets for the aluminium industry continued following the collapse caused by the COVID-19 pandemic. However, despite global demand for aluminium increasing by 11%, these indicators still do not result in achieving stable levels of consumption and normalizing demand.
The recently identified highly contagious Delta variant of COVID-19 has led to an increase in new infections and deaths worldwide. The rising in cases is potentially a significant downside risk for the global economy due to possible closures, and the related decrease in demand and fall of commodity prices, including aluminium.
The end of the pandemic and expectations of possible restrictions on stimulus and quantitative easing programs due to the rapid recovery of the global economy can potentially lead to an increase in the supply of metals, including aluminium, and to a correction in world prices for them.