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Indebted RusAl Revises 2013 Earnings Down by $100M

Loss-making Russian aluminum group United Company RusAl Plc said it has revised down its earnings for 2013 after a review of its share of profits of associates in Norilsk Nickel showed the figure was overstated by $100 million.

RusAl is of the view that a lower profit share in Norilsk Nickel will have an adverse impact on its consolidated financial statements for 2013, the world's biggest aluminum producer said in a filing to the Hong Kong bourse on Thursday morning.

RusAl's 2013 loss has now been revised to $3.322 billion from $3.222 billion and its share of profits of associates should be $84 million instead of $184 million, it said.

Carrying value of the company's investment in Norilsk Nickel, the world's largest nickel and palladium producer, should be $7.801 billion, rather than $7.901 million.

RusAl had reported its full-year net loss for 2013 was at $3.22 billion, versus $528 million loss in 2012.

Lenders have granted RusAl a three-month breather, giving the loss-making firm time to try to hammer out revised terms for $3.7 billion of debt repayments without risk of default.

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