Rusal Faces Financial Turbulence Amid Rising Costs and Market Strain
Rusal, the prominent Russian aluminium producer, reported a net loss of $87 million in the first half, driven by increased costs and interest expenses. Revenue climbed by 32% thanks to higher aluminium sales, but the impact of Western sanctions continues to cast a shadow on the company's financial performance.
Rusal, the renowned Russian aluminium producer, has announced a significant net loss for the first half of the year, highlighting the financial strain imposed by escalating costs and market challenges.
On Friday, the Hong Kong-listed company revealed a net loss of $87 million for the first six months, compared to a $565 million profit the previous year. This downturn is attributed to various factors, including the long-standing repercussions of Western sanctions against Russia due to the conflict in Ukraine, which, although not directly targeting Rusal, have led to some Western buyers shying away from new contracts involving Russian aluminium.
The company's financial expenses soared by $408 million, driven by heightened interest on loans, bonds, and additional charges, alongside a foreign exchange loss of $181 million. Nevertheless, despite a 40% increase in the cost of sales, Rusal experienced a 32% rise in revenue to $7.52 billion, fueled by higher sales of primary aluminium and alloys.
(With inputs from agencies.)
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