Support The Moscow Times!

Alrosa 2013 Profit Down 5% on Weak Ruble

Alrosa, which accounts for 27 percent of global diamond production, is 44 percent owned by Russia's government.

The world's largest diamond miner, Russia's Alrosa, said on Tuesday that its 2013 net profit fell by 5 percent to 31.8 billion rubles ($900 million) year-on year.

The decline was caused mainly by an "increased exchange loss and revaluation of the dollar denominated part of the group's credit portfolio as a result of the ruble weakening in 2013," it said in a statement.

The company's revenue increased by 12 percent last year to 168.5 billion rubles due to increased rough diamond sales volume. Alrosa sold 38 million carats of diamonds last year, 15 percent more than in 2012, which offset weak gem prices.

"Despite the lack of a price growth on the diamond market, Alrosa managed to increase revenue and retain a high level of profitability. We implemented the plans for construction of new production facilities and modernization of the existing ones," said Fyodor Andreyev, Alrosa's CEO, commenting on the results.

The company's earnings before interest, taxes, depreciation and amortization, or EBITDA, rose by 12 percent on 2012 to 69.1 billion rubles, while free cash flow was 15.4 billion rubles, up 29 percent on the previous year, which reflected increased operating profit and decreased investments in working capital, the statement said.

Alrosa, which accounts for 27 percent of global diamond production, is 44 percent owned by Russia's government. Another 25 percent of its shares belong to the government of the republic of Sakha and  percent to municipal and district administrations of the Siberian republic. Free float is 23 percent.

Sign up for our free weekly newsletter

Our weekly newsletter contains a hand-picked selection of news, features, analysiss and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview
Subscribers agree to the Privacy Policy

A Message from The Moscow Times:

Dear readers,

We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."

These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.

We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.

By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more