Rusal has announced its financial and operational results for the year 2020 ended on December 31, severely impacted by the COVID-19 pandemic, particularly the first months of the year that saw significant global market turmoil due to the virus outbreak. According to the report revealed by Rusal, the company’s bauxite production reflected a downfall of 7.5 per cent from 16.047 million tonnes in 2019 to 14.838 million tonnes in 2020. In the first half of the year, the company’s bauxite output was 7.469 million tonnes, which in the second half dropped by 1.3 per cent to 7.369 million tonnes. On a year-on-year basis, the output in H2 2020 showed a decrease of 7.6 per cent from 7.974 million tonnes.

Full-year alumina production, on the other hand, rose 4.1 per cent from 7.858 million tonnes in 2019 to 8.182 million tonnes. In H1 ended on June 30, 2020, Rusal’s alumina output was at 4.022 million tonnes, which grew in H2 by 3.4 per cent to stand at 4.160 million tonnes. On a year-on-year basis, production in H2 stood up by 3.8 per cent from 4.008 million tonnes.

However, despite the rise in production, Rusal’s alumina sales declined to 1,729 kilo tonnes in 2020 resulting in revenue earned from alumina decrease from US$ 664 million in 2019 to US$ 533 million in 2020. Rusal’s total revenue in 2020 stood 11.8 per cent lower at US$ 8,566 million as compared to US$ 9,711 million in 2019.

Rusal’s annual results also reveal that its cost of bauxite sales in 2020 was US$ 447 million - 7.5 per cent less than US$ 483 million in 2019. Cost of alumina sales also stood down by 20.4 per cent year-on-year from US$ 764 million to US$ 608 million.

Rusal’s adjusted EBITDA, defined as results from operating activities adjusted for amortisation and depreciation, impairment charges and loss on disposal of property, plant and equipment, decreased to US$ 871 million in 2020, as compared to USD966 million in 2019. As a result, the company recorded a profit of US$ 759 million in 2020, as compared to US$ 960 million in 2019.

Commenting on the results, Evgenii Nikitin, CEO of RUSAL, said: “The past year has proven that despite all the challenges and market turbulence, RUSAL has remained resilient, committed to its strategic goals and has delivered a robust set of results. Throughout the pandemic we carried out all our operations in a COVID-secure environment and maintained the high level of service our customers expect of us, whilst ensuring minimum disruption to our supply chains.”