Financial Performance - Revenue for 2019 was $9,711 million, a decrease of 5.5% from $10,280 million in 2018[9] - Adjusted EBITDA for 2019 was $966 million, resulting in an adjusted EBITDA margin of 9.9%, down from 21.0% in 2018[9] - Net profit for 2019 was $960 million, with a net profit margin of 9.9%, compared to 16.5% in 2018[9] - Revenue decreased by 5.5% to $9,711 million, while EBITDA dropped from $2,163 million in 2018 to $966 million in 2019[54] - Total revenue decreased by $569 million or 5.5% from $10,280 million in 2018 to $9,711 million in 2019[139] - Sales revenue from foil and other aluminum products increased by $64 million or 18.5% to $410 million in 2019, attributed to higher sales of aluminum wheels[141] - The average aluminum price per ton decreased from $2,110 in 2018 to $1,792 in 2019, impacting overall revenue[141] - The company's net working capital increased by 11% to $1.0 billion in 2019, influenced by higher inventory and accounts receivable[75] Production and Capacity - The production capacity of the Boguchansky aluminum smelter reached nearly 300,000 tons per year following the commissioning of the second phase in March 2019[18] - The Taishet aluminum smelter's first production line has a capacity of 428.5 thousand tons, with construction ongoing using internal funds[18] - The production capacity at the Boguchansky aluminum smelter is set to increase by 150 thousand tons, bringing total capacity to 300 thousand tons[54] - The total rated capacity of the aluminum smelters is 3,900 thousand tons, with an overall capacity utilization rate of 96%[59] - In 2019, the BEMO smelter produced 257,713 tons of aluminum, an increase of 111,025 tons compared to 2018, achieving its design capacity[60] - The company’s aluminum production totaled 3,757 thousand tons in 2019, a slight increase of 0.1% from the previous year[116] - The company produced 100,556 tons of prebaked anodes in 2019, with ongoing modernization projects to improve operational efficiency[118] Environmental Initiatives - The company aims to achieve zero greenhouse gas emissions through the development of inert anode technology, potentially reducing operating costs by 10%[17] - The company launched the "Green Million" initiative, planting 1 million trees as part of its environmental projects, with 500,000 pine trees planted in Irkutsk and Krasnoyarsk regions[49] - The company is recognized as a benchmark for environmental, social, and governance standards, maintaining a strong position in the Vigeo Eiris ranking of emerging market leaders[49] - The company aims to reduce sulfur dioxide emissions by 45% by 2023 and 90% by 2025, with a long-term goal of a 95% reduction by 2030[76] - The company has committed to being a responsible aluminum producer, as evidenced by its compliance with independent authority regulations[49] - Rusal's environmental strategy aims to reduce emissions, establish closed water supply systems for major production processes, and increase the volume of processed and recycled waste[96] - The company has undertaken steps to mitigate its operational impact on the environment and comply with applicable environmental laws and regulations[96] Market and Sales - The company has a diversified sales mix, delivering aluminum products to key markets including Europe, the USA, and Southeast Asia[17] - In 2019, the average aluminum price on the London Metal Exchange fell by nearly 15%, impacting overall financial performance[53] - Despite the price drop, aluminum and alloy sales increased by 13.8% year-on-year, with Q4 sales growing by 26.2% compared to Q4 2018, resulting in Q4 revenue of $2,489 million[108] - The average premium for aluminum increased by 32.4% in Q4 2019 to $143 per ton, compared to $108 per ton in Q4 2018[108] - The company aims to strengthen its position in key markets including the CIS, Europe, Asia, and the US[79] Investments and Financing - The company signed a sustainable development-related syndicated loan amounting to $1,085 million, the first of its kind in Russia[50] - The company completed a ruble bond placement valued at 60 billion rubles (approximately $930 million), reducing the interest rate from 9.0% to 7.45%[50] - The company optimized its debt structure through a $1,085 million sustainable export pre-financing loan and issued local bonds worth 15 billion rubles at a low interest rate of 7.45%[108] - The company has a syndicated aluminum export pre-financing loan of up to 1.085 billion USD, with quarterly repayments starting from January 2022 until November 2024[172] Corporate Governance and Compliance - The company has established a compliance department to ensure adherence to the Office of Foreign Assets Control (OFAC) regulations[183] - The board of directors held ten meetings during the year, with independent non-executive directors present in eight of those meetings where they had significant interests[168] - The audit committee was established to provide independent opinions on the company's financial reporting processes and risk management effectiveness[169] - The company adopted a corporate governance code based on the listing rules, ensuring compliance with the relevant provisions during the reporting period[168] Social Responsibility and Community Engagement - Rusal invested 1.172 billion rubles in social infrastructure projects, supporting 640 social and infrastructure projects across 22 towns, benefiting over 500,000 local residents[102] - The company conducted 296 educational activities under the "Urban Change Academy" program, with 8,742 participants, providing online courses in social design and entrepreneurship[102] - The "Get on Ski" project was launched in collaboration with En+ Group and the Russian Cross-Country Skiing Federation to promote a healthy lifestyle, with investments of 28 million rubles in Bratsk for the reconstruction of two sports facilities[105] - The company established the Russian-Guinea Infectious and Microbiological Science Diagnostic Center in Guinea, where 2,000 local residents voluntarily received vaccinations as part of an Ebola vaccine research program[105] Risk Management - The company emphasized the establishment of an effective risk management system to mitigate business risks, including defining and assessing risks and implementing mitigation measures[192] - The company reported that the terms of credit financing agreements impose certain restrictions on capital expenditures and dividend payments, which could adversely affect the company and its shareholders[193] - The company faces various litigation and claims, with an estimated outflow of claims amounting to approximately $21 million as of December 31, 2019, compared to $31 million as of December 31, 2018[195] Employee Development and Training - The company actively trains and develops its internal and external succession pool, providing professional knowledge to students[184] - The "New Generation" apprentice program, initiated in 2017, aims to revitalize the workforce by hiring high-potential young specialists, with over 85% of the 100 students from 2019 still employed at Rusal[186] - In 2019, over 4,000 students visited the company's production facilities for career guidance, promoting industry awareness among youth[186] - The company has established excellence centers at two universities to provide intensive training for students in metallurgy and mining[186]
俄铝(00486) - 2019 - 年度财报