ALROSA sold diamond products worth $1.24 billion for 8 months

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AK&M 11 September 2020 15:08

Alrosa's sales of rough and polished diamonds for eight months of 2020 amounted to $1,244 million, including $1.18 billion in revenue from sales of rough diamonds, $63.6 million in revenue from sales of polished diamonds, the company informed.

In August, the company sold rough and polished diamonds for $216.7 million, including $202.1 million in proceeds from rough diamond sales, $14.6 million in polished diamond sales.

 "Given that demand for diamond jewelry is gradually recovering in recent months, specifically in the U.S. and China, and diamonds' stock levels keep declining at both retail and midstream, we see the demand for rough diamonds is picking up, which is a good sign as we approach seasonal growth in market activity in Q4. Hopefully the support we offered our long-term clients in March-August has a positive effect on restoring the supply/demand balance and helps the diamond market to overcome the most challenging period," Evgeny Agureev, Deputy CEO of ALROSA, was quoted as saying in the company's statement.

PJSC ALROSA (tax number: 1433000147) is one of the largest diamond-mining companies of the world accounting for 97% of all diamonds of the Russian Federation and about 25% of the global diamond production. The company includes the unified marketing company United Selling Organization ALROSA, Brillianty ALROSA, Aikhal Mining and Processing Division, Mirny Mining and Processing Division, Udachny Mining and Processing Division and Nyurba Mining and Processing Division. The company's largest shareholders are Russia's Federal Agency for State Property Management (Rosimushchestvo) and the Sakha Republic / Yakutia.

ALROSA's total rough and polished diamond sales in January-December 2019 amounted to $3.338 billion. Rough diamonds were sold for $3.273 billion, polished diamonds for $64.7 million.

IFRS net profit of ALROSA for the first half of 2020 decreased by 91% to RUB 3.3 billion from RUB 37.5 billion a year earlier. Diamond sales dropped by 47% to RUB 10.1 billion from RUB 18.9 billion. Revenue decreased by 43% to RUB 73.1 billion from RUB 127.9 billion, EBITDA by 47% to RUB 30.1 billion from RUB 56.5 billion.

IFRS net profit of ALROSA for 2019 decreased by 31% to RUB 62.7 billion from RUB 90.4 billion a year earlier. The weaker performance resulted from lower revenue partly offset by rising FX gains. Revenue decreased by 21% to RUB 238.2 billion from RUB 299.6 billion due to a 12% reduction in sales due to a contraction in demand in the rough and polished diamonds market (primarily in the first half of 2019), a decrease in the average price index (-6%), and changes in the sales structure due to stronger demand for small-size diamonds. EBITDA decreased by 31% to RUB 107.1 billion from RUB 156 billion resulting from lower revenues.

RAS net loss of ALROSA for January-March 2020 was RUB 7.481 billion against a profit of RUB 16.06 billion a year earlier. Revenue decreased by 18.78% to RUB 40.147 billion from RUB 49.43 billion. Pre-tax loss was RUB 8.907 billion against a profit of RUB 20.464 billion.