Financial Performance - Revenue for the first half of 2020 was $4,015 million, a decrease of 15.2% compared to $4,736 million in 2019[3] - Adjusted EBITDA was $219 million, with an adjusted EBITDA margin of 5.5%, down from 11.1% in the previous year[3] - Total revenue decreased by 15.2% from $4,736 million in the first half of 2019 to $4,015 million in the same period of 2020[23] - Adjusted EBITDA fell to $219 million, with a profit margin of 5.5%, down from $528 million and 11.1% in the previous year[15] - The gross profit for the first half of 2020 was $495 million, down from $805 million in the same period of 2019, with the gross margin decreasing from 17.0% to 12.3%[30] - The company's pre-tax loss for the first half of 2020 was $204 million, a significant decline from a profit of $715 million in the first half of 2019[37] - The net loss for the period was $124 million in the first half of 2020, compared to a profit of $625 million in the same period of 2019, mainly due to an environmental provision of $2,134 million recognized by Norilsk Nickel[38] - The adjusted net loss for the first half of 2020 was $63 million, compared to an adjusted net profit of $98 million in the first half of 2019, reflecting a decrease of 35.7%[39] - The aluminum segment's profit margin decreased from 10.5% in the first half of 2019 to 5.7% in the first half of 2020, while the alumina segment's margin shifted from positive 0.5% to negative 3.8%[41] Production and Sales - Aluminum production totaled 1,867 thousand tons, maintaining a stable level compared to the same period last year[6] - Sales of value-added products increased by 16.5% year-on-year, with their share in the product mix rising from 34% to 42%[6] - Aluminum production remained stable at 1.867 million tons, while value-added production decreased from 803,000 tons to 730,000 tons due to the COVID-19 pandemic[16] - Alumina production increased by 4.5% to 4.022 million tons, compared to 3.850 million tons in the same period last year[17] - Bauxite production decreased by 7.5% to 7.469 million tons, down from 8.073 million tons, primarily due to the suspension of operations in Guyana[18] - Revenue from primary aluminum and alloys decreased by $559 million or 14.4% to $3,318 million in the first half of 2020, primarily due to a decline in average aluminum prices and a 4.4% decrease in sales volume[24] - Alumina sales revenue fell by 28.8% to $242 million, driven by a 27.4% drop in average selling price and a 1.9% decrease in sales volume[25] - Sales revenue from foil and other aluminum products decreased by $27 million or 13.2% to $178 million, mainly due to reduced sales of aluminum wheels[25] Market Conditions - Global aluminum demand decreased by 6.6% year-on-year to 30.3 million tons in the first half of 2020, with demand outside of China dropping by 15.4% to 12.3 million tons[8] - In Europe, aluminum demand fell by 16.1% to 4 million tons in the first half of 2020 due to the impact of COVID-19 on automotive manufacturing and construction[9] - North American aluminum demand declined by 18.2% to 2.8 million tons in the first half of 2020, with manufacturing indices showing signs of recovery starting in May[9] - In South America, aluminum demand decreased by 10.5% to 0.5 million tons, primarily due to the COVID-19 outbreak in Brazil and ongoing financial issues in Argentina[9] - China's aluminum demand remained stable at 18 million tons in the first half of 2020, with a significant recovery in the second quarter[10] - The global aluminum market recorded a surplus of 1.8 million tons in the first half of 2020, with approximately 12% of smelters in other regions operating at a loss[11] Assets and Liabilities - Total assets decreased to $16,722 million from $17,814 million year-on-year[3] - Net debt reduced to $5,964 million from $6,466 million in the previous year[3] - The company's equity total decreased to $5.978 billion from $6.747 billion during the same period[75] - Total liabilities decreased to $10.744 billion from $11.067 billion[77] - The debt-to-assets ratio as of June 30, 2020, was 48.2%, up from 46.3% at the end of 2019[54] COVID-19 Impact - The company identified the COVID-19 pandemic as a significant risk factor affecting production and demand, particularly for value-added products related to the automotive market[62] - The company has implemented extensive preventive measures against COVID-19, including remote work and temperature monitoring[62] - The company is currently assessing the impact of the COVID-19 pandemic on its financial condition and future cash flows, with management implementing cost optimization measures[87] - The company has been affected by a decline in aluminum prices due to the COVID-19 pandemic, which has negatively impacted its revenue and profitability[87] Investments and Modernization - The company committed to invest approximately $190 million in modernizing the electrode production at the Sayanogorsk aluminum smelter from 2020 to 2023[7] - A new casting plant is being constructed at the Boguchansk aluminum smelter, enhancing the company's position as a leading producer of value-added products for the automotive industry[7] - The company announced an investment of approximately 600 million rubles for environmental modernization at the Volgograd aluminum smelter[65] - The company plans to invest 5.2 billion rubles in the modernization of the Sayanogorsk and Khakas aluminum smelters in 2020[65] Corporate Governance - The company has adopted international corporate governance standards to enhance business development and shareholder protection[166] - The company has committed to maintaining high-quality corporate governance to ensure transparency and accountability[166] - The board held five meetings during the six months ending June 30, 2020, with all independent non-executive directors present for matters involving significant interests disclosed by one or more directors[168] - The company has adopted a securities trading code that exceeds the standards set out in Appendix 10 of the Listing Rules, with all directors confirming compliance throughout the accounting period covered by the interim report[170] Employee and Labor Relations - The average number of employees decreased from 57,326 in H1 2019 to 52,611 in H1 2020, reflecting a reduction of approximately 8.5%[57] - Approximately 60% of the company's employees are union members, and 95% have signed collective agreements[59] - The company’s employee compensation is reviewed annually, considering performance evaluations and local labor market conditions[58]
俄铝(00486) - 2020 - 中期财报