Mar 16, 2018

Foreign Exchange Headwinds, Amongst Other Factors Impact ALROSA Results for FY 2017

PJSC ALROSA, releasing its IFRS results for FY 2017 reported that its revenue for the period dropped by 13% to touch RUB 275.4 billion (2016: RUB 317.1 billion); while net profit was down by 41% and stood at RUB 78.6 billion (2016: 135.5 billion).

The Company’s  EBITDA for 2017 at  RUB 126.9 billion was lower by 28% as compared to 2016 EBITDA of RUB 176.4 billion.

However, diamond sales in 2017 of 41.2 million carats were higher by 3% as compared to the previous year’s sale  of 40.0 million carats; and production also increased, by 6%,  going up to 39.6 million carats from 37.4 million carats produced in the previous year.

“Financial performance in 2017 was down y-o-y due to a 13% ruble appreciation against the US dollar and a 9% decrease in the average price of gem-quality diamonds sold mainly as a result of changes in the product mix,” the Company explained.

“Although production and sales volumes increased, ALROSA's 2017 financial results were affected by a number of macroeconomic and market factors, especially the stronger ruble and the product mix changes. However, our efforts to enhance operational efficiency proved successful and, despite higher production and sales volumes, helped us maintain per unit costs at the 2016 level,”  said Sergey Ivanov, Chief Executive Officer of PJSC ALROSA.