2 weeks ago
Stock Market

Rusal Drops Despite Profit Reap

Investing.com – Russian aluminum titan U.C. Rusal said on Thursday that its net profit for 2018 surged 39%, but the

Investing.com – Russian aluminum titan U.C. Rusal said on Thursday that its net profit for 2018 surged 39%, but the company’s share prices in Hong Kong dropped 4.16% to HK$3.69 in morning trading in Asia.

Still, share prices are still close to six-month highs.

Posting its annual results on Thursday, Rusal (HK:0486) said it achieved a net profit of $1,698 million, up 39% year-on-year in 2018. Revenue increased by 3.1% to US$10,280 million.

In January, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) lifted sanctions that had been imposed on Rusal in April 2018.

“Despite the OFAC Sanctions, Rusal’s full-year results demonstrated skillful crisis management,” said Rusal’s CEO Evgenii Nikitin in the statement.

“We expect aluminum demand to recover after the trade wars and supply shocks of late 2018. Alongside forecasting markets outside China to be in heavy deficit in 2019, we are confident that Rusal is fully capable of leveraging this trend,” he added.