俄铝(00486) - 2025 - 中期业绩

Financial Highlights Financial Indicators For the six months ended June 30, 2025, the company's revenue grew 32.0% to $7.52 billion, but profitability declined significantly, with adjusted EBITDA down 4.8% and a net loss of $87 million Key Financial Indicators | Indicator | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | 7,520 million USD | 5,695 million USD | | Adjusted EBITDA | 748 million USD | 786 million USD | | Adjusted EBITDA Margin | 9.9% | 13.8% | | Net (Loss)/Profit | (87) million USD | 565 million USD | | Basic (Loss)/Earnings Per Share | (0.0057) USD | 0.0372 USD | | Net Debt (Period-end) | 7,378 million USD | 6,415 million USD (as of 2024 year-end) | Chairman's Letter Chairman's Letter Chairman Bernard Zonneveld highlights a challenging H1 2025 for the global economy and aluminum industry, with trade wars and rising debt, aluminum price gains offset by Ruble appreciation, and the company focusing on low-carbon metals and 2050 carbon neutrality - Macroeconomic environment is severe, with new trade wars and countermeasures increasing market uncertainty and eroding corporate confidence[6] - Despite rising aluminum prices in H1, the positive impact was largely offset by a 25% appreciation of the Ruble during the same period[6] - The company is expanding its low-carbon metal supply and updating its climate strategy, aiming for decarbonization and carbon neutrality by 2050[7] General Director's Letter General Director's Letter General Director Evgenii Nikitin emphasizes navigating global economic volatility, geopolitical conflicts, and domestic constraints, while pursuing long-term goals including environmental upgrades, inert anode technology, increased recycled metal use, and digital integration - The company announced an aluminum capacity optimization program in late November 2024 to address soaring alumina prices and macroeconomic risks[9] - The company is the only one globally producing commercial high-quality aluminum using inert anode technology under industrial conditions[9] - The company demonstrates environmental commitment by increasing recycled metal use and expanding additive manufacturing and fertilizer production lines with by-products[9] Management Discussion and Analysis Industry Trends and Business Environment In H1 2025, the global aluminum market experienced significant volatility due to US trade policies and supply chain disruptions, with LME aluminum prices averaging $2,593 per tonne, global primary aluminum demand growing 3.6% driven by China, and a structural supply deficit of 1.1 million tonnes in China contrasting with a 1 million tonne surplus outside China - In H1 2025, LME aluminum prices averaged $2,593 per tonne, an increase of $76.5 per tonne[15] - Global primary aluminum demand increased by 3.6% year-on-year to 36.7 million tonnes, with China's consumption rising 4.5% to 22.9 million tonnes, serving as the main growth engine[15] - The market landscape shows divergence: a persistent supply surplus of approximately 1 million tonnes outside China, while China continues to face a structural supply deficit of approximately 1.1 million tonnes[15] Financial and Operating Performance In H1 2025, total revenue grew 32.0% to $7.52 billion driven by increased sales volume and LME aluminum prices, but sales costs rose 39.3%, reducing gross margin from 23.0% to 18.8%, with adjusted EBITDA declining 4.8% to $748 million and a net loss of $87 million due to exchange losses and higher interest expenses Key Operating Data In H1 2025, primary aluminum production decreased 1.7% to 1,924 thousand tonnes, while alumina production increased 13.5% to 3,400 thousand tonnes, and bauxite production rose 21.8% to 9,668 thousand tonnes, with primary aluminum and alloy sales up 21.7% to 2,286 thousand tonnes, and aluminum segment cost per tonne increasing from $1,975 to $2,265 Key Operating Data (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Production (thousand tonnes) | | | | Primary Aluminum | 1,924 | 1,957 | | Alumina | 3,400 | 2,995 | | Bauxite (wet) | 9,668 | 7,940 | | Sales Volume (thousand tonnes) | | | | Sales of Primary Aluminum and Alloys | 2,286 | 1,879 | | Price and Cost (USD per tonne) | | | | Aluminum Segment Cost per Tonne | 2,265 | 1,975 | | LME Aluminum Price per Tonne | 2,538 | 2,360 | Production Analysis In H1 2025, primary aluminum production decreased 1.7% due to capacity optimization, while alumina production increased 13.5% driven by the acquisition of a 30% stake in Wen Feng New Materials, and bauxite production rose 21.8% due to increased third-party sales, with aluminum foil and packaging materials production declining 5.0% - Primary aluminum production decreased by 1.7% to 1,924 thousand tonnes, primarily due to the capacity optimization program announced in November 2024[24] - Alumina production increased by 13.5% to 3.4 million tonnes, mainly due to the acquisition of a 30% stake in Chinese company Wen Feng New Materials[25] - Bauxite production increased by 21.8% to 9.668 million tonnes, primarily achieved through partial sales of CBK and Dian Dian bauxite to third-party customers[27] Revenue Analysis Total revenue increased 32.0% to $7.52 billion, with primary aluminum and alloy sales revenue up 29.8% to $5.966 billion driven by volume and price, alumina sales revenue growing 97.4% from both volume and price, and Asia's revenue share significantly increasing from 42% to 53% Revenue Composition (For the six months ended June 30) | Product Category | 2025 Revenue (million USD) | 2024 Revenue (million USD) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Sales of Primary Aluminum and Alloys | 5,966 | 4,597 | +29.8% | | Sales of Alumina | 377 | 191 | +97.4% | | Sales of Foil and Other Aluminum Products | 376 | 342 | +9.9% | | Other Revenue | 801 | 565 | +41.8% | | Total Revenue | 7,520 | 5,695 | +32.0% | - By geographical region, Asia's revenue share increased significantly from 42% to 53%, while Europe's share decreased from 22% to 16%[40] Cost of Sales Analysis Total cost of sales increased 39.3% from $4.385 billion to $6.110 billion, primarily due to a 21.7% increase in primary aluminum sales volume and higher prices for alumina, other raw materials, average electricity, and transportation tariffs, with energy, alumina, and other raw materials being the largest cost components - Total cost of sales increased by 39.3% to $6,110 million, growing faster than revenue, primarily due to increased sales volume and higher prices for raw materials and energy[41] Operating Performance and Adjusted EBITDA Due to faster cost growth than revenue, the company's gross margin decreased from 23.0% to 18.8%, operating performance declined 42.7% to $252 million, and adjusted EBITDA decreased 4.8% to $748 million, with the adjusted EBITDA margin falling from 13.8% to 9.9%, reflecting deteriorating profitability Adjusted EBITDA Reconciliation (For the six months ended June 30) | Item (million USD) | 2025 | 2024 | | :--- | :--- | :--- | | Operating Performance | 252 | 440 | | Add: Amortization and Depreciation | 327 | 249 | | Add: Impairment of Non-current Assets | 166 | 96 | | Add: Loss on Disposal of Property, Plant and Equipment | 3 | 1 | | Adjusted EBITDA | 748 | 786 | Loss/Profit for the Period Influenced by a significant increase in finance expenses, particularly $181 million in exchange losses, and higher income tax expenses, the company shifted from a pre-tax profit of $729 million to $125 million, ultimately reporting a net loss of $87 million for the period, compared to a profit of $565 million in the prior year, with adjusted recurring net loss at $16 million versus a $620 million profit - Finance expenses increased by 231.8% year-on-year to $584 million, primarily due to higher interest expenses and an exchange loss of $181 million (compared to an exchange gain of $139 million in the prior period)[45][46] - The company recorded a net loss of $87 million for the period, compared to a profit of $565 million in the corresponding period of 2024[51] Adjusted and Recurring Net Profit Reconciliation (For the six months ended June 30) | Item (million USD) | 2025 | 2024 | | :--- | :--- | :--- | | Net (Loss)/Profit for the Period | (87) | 565 | | Adjusted Net (Loss)/Profit | (194) | 446 | | Recurring Net (Loss)/Profit | (16) | 620 | Segment Reporting Among core segments, the Aluminum segment's profitability significantly declined, with its EBITDA margin dropping from 19.0% to 13.1%, while the Alumina segment showed improvement, increasing its EBITDA margin from 0.6% to 3.8% Core Segment Performance (For the six months ended June 30) | Segment | Indicator | 2025 | 2024 | | :--- | :--- | :--- | :--- | | Aluminum | Segment EBITDA (million USD) | 725 | 853 | | | Segment EBITDA Margin | 13.1% | 19.0% | | Alumina | Segment EBITDA (million USD) | 44 | 5 | | | Segment EBITDA Margin | 3.8% | 0.6% | Working Capital As of June 30, 2025, the Group's working capital slightly decreased to $4.344 billion from $4.586 billion at year-end 2024, with a significant increase in current liabilities leading to a $582 million net current liability, compared to a $1.602 billion net current asset at the prior year-end - The Group recorded a net current liability of $582 million as of June 30, 2025, compared to net current assets of $1.602 billion as of December 31, 2024[57] Capital Expenditure In H1 2025, total capital expenditure significantly increased to $707 million from $516 million in the prior year, primarily allocated to maintaining existing production facilities, including potline modernization and re-equipment Capital Expenditure Breakdown (For the six months ended June 30) | Category (million USD) | 2025 | 2024 | | :--- | :--- | :--- | | Development Capital Expenditure | 297 | 207 | | Maintenance | 410 | 309 | | Total Capital Expenditure | 707 | 516 | Loans and Borrowings As of June 30, 2025, the Group's loans and borrowings had a face value of $4.166 billion, in addition to $4.321 billion in bonds, with the debt portfolio primarily comprising Russian bank loans and RMB and Ruble bonds issued on the Moscow Exchange - As of June 30, 2025, the Group's loans and borrowings had a face value of $4.166 billion, excluding $4.321 billion in bonds[61] Key Events During the Reporting Period In H1 2025, the company engaged in frequent financing activities, including issuing multiple tranches of Ruble and RMB-denominated bonds, redeeming some matured RMB bonds, and using cross-currency interest rate swaps to convert Ruble bond exposure to RMB or USD, with no dividends recommended or approved by the Board - The Board did not recommend or approve the payment of dividends for the six months ended June 30, 2025[65] - The company conducted multiple bond issuances and redemptions during the period, involving Ruble and RMB, and used cross-currency swaps to manage currency risk[66] Cash Flow In H1 2025, operating cash flow significantly improved to $888 million from a $403 million net outflow in the prior year, while net cash used in investing activities expanded from $232 million to $528 million, and net cash used in financing activities substantially increased from $104 million to $799 million due to debt repayments, with cash and cash equivalents decreasing to $1.123 billion at period-end Cash Flow Statement Summary (For the six months ended June 30) | Item (million USD) | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash from/(used in) Operating Activities | 888 | (403) | | Net Cash used in Investing Activities | (528) | (232) | | Net Cash used in Financing Activities | (799) | (104) | | Net Change in Cash and Cash Equivalents | (439) | (739) | Financial Ratios The company's financial ratios indicate pressure, with the debt-to-asset ratio stable at 35.4%, but return on equity turning negative to -0.7%, and the interest coverage ratio sharply declining from 9.0x to 1.4x, signaling significantly weakened debt servicing capability - The interest coverage ratio (EBIT/Net Interest) sharply decreased from 9.0x in the prior period to 1.4x[72] - Return on equity (Net Profit/Total Equity) decreased from 4.7% to -0.7%[71] Business Risks The company faces multiple business risks, including demand uncertainty from global commodity market volatility, reliance on uninterrupted power supply, transportation service disruptions, foreign exchange fluctuations, labor issues, dependence on third-party raw material suppliers (especially in geopolitical contexts), equipment failure risks, HSE risks, and multi-jurisdictional regulatory and political risks - Key business risks identified by the company include: demand volatility, power supply interruptions, reliance on transportation, foreign exchange fluctuations, labor issues, supply chain risks (especially suspension of Ukrainian facilities and Australian export ban), equipment failures, and geopolitical risks[91][95] Independent Auditor's Report Independent Auditor's Report TSATR-Audit Services Limited Liability Company issued an unmodified review conclusion on the company's interim condensed consolidated financial statements for the six months ended June 30, 2025, but included an 'Emphasis of Matter' paragraph highlighting significant uncertainties related to geopolitical tensions, sanctions, and market volatility that may cast significant doubt on the Group's ability to continue as a going concern - The auditor issued an unmodified conclusion on the interim financial statements[100] - The report includes an "Emphasis of Matter" paragraph, noting significant uncertainties that may cast substantial doubt on the Group's ability to continue as a going concern, primarily stemming from geopolitical tensions, sanctions, and market volatility[101] Interim Condensed Consolidated Financial Statements Interim Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, the company reported revenue of $7.52 billion, up 32% year-on-year, but operating performance decreased from $440 million to $252 million due to increased cost of sales and expenses, resulting in a net loss of $87 million for the period compared to a profit of $565 million in the prior year Interim Condensed Consolidated Statement of Profit or Loss Summary (million USD) | Item | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | 7,520 | 5,695 | | Gross Profit | 1,410 | 1,310 | | Operating Performance | 252 | 440 | | Profit Before Tax | 125 | 729 | | Net (Loss)/Profit for the Period | (87) | 565 | Interim Condensed Consolidated Statement of Financial Position As of June 30, 2025, total assets increased to $24.053 billion from $22.201 billion at year-end 2024, primarily due to higher equity in associates and joint ventures, with total liabilities rising from $10.985 billion to $11.949 billion, total equity increasing from $11.216 billion to $12.104 billion, and current liabilities exceeding current assets by $582 million, resulting in a net current liability Interim Condensed Consolidated Statement of Financial Position Summary (million USD) | Item | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Total Assets | 24,053 | 22,201 | | Non-current Assets | 15,818 | 13,840 | | Current Assets | 8,235 | 8,361 | | Total Equity and Liabilities | 24,053 | 22,201 | | Total Equity | 12,104 | 11,216 | | Total Liabilities | 11,949 | 10,985 | | Net Current (Liabilities)/Assets | (582) | 1,602 | Interim Condensed Consolidated Statement of Cash Flows In H1 2025, net cash from operating activities significantly improved to $888 million from a $403 million net outflow in the prior year, while net cash used in investing activities expanded from $232 million to $528 million, and net cash used in financing activities substantially increased from $104 million to $799 million due to debt repayments, with cash and cash equivalents decreasing to $1.123 billion at period-end Interim Condensed Consolidated Statement of Cash Flows Summary (million USD) | Item | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Net Cash from/(used in) Operating Activities | 888 | (403) | | Net Cash used in Investing Activities | (528) | (232) | | Net Cash used in Financing Activities | (799) | (104) | | Net Decrease in Cash and Cash Equivalents | (439) | (739) | Summary of Notes to the Financial Statements Notes to the financial statements provide detailed explanations of the company's financial position and operating performance, highlighting significant uncertainties regarding going concern due to geopolitical instability and sanctions, investments in Norilsk Nickel and Hebei Wen Feng New Materials, detailed loan and bond structures with frequent issuance and redemption activities, $854 million in capital commitments, and post-reporting period events including the acquisition of an Indian alumina refinery stake and new RMB loans - Note 1(f) Going Concern: Management indicates that ongoing geopolitical instability, sanctions, financing availability, and market volatility create significant uncertainty regarding the Group's ability to meet its financial obligations on time and continue as a going concern[132] - Note 10 Investments in Joint Ventures: The Group completed the acquisition of a 30% stake in Hebei Wen Feng New Materials Co Ltd, a Chinese alumina producer, in April 2024 for a final consideration of $316 million[160] - Note 18 Events After the Reporting Date: In July 2025, the Group completed the first stage of acquiring a 26% stake in Pioneer Aluminium Industries Limited in India for $243.75 million and secured new loans totaling 9.3 billion RMB[202] Corporate Governance and Shareholder Information Directors' and Major Shareholders' Interests The report discloses changes in Board members, including the retirement of two non-executive directors and the appointment of four new directors, with EN+ Group holding 56.88% and SUAL Partners 25.72% as major shareholders, noting that Oleg Deripaska's effective shareholding is capped at 25.57% - On June 26, 2025, two non-executive directors retired, and two new non-executive directors and two new independent non-executive directors were appointed[207] Major Shareholder Holdings (As of June 30, 2025) | Shareholder Name | Capacity | Shareholding Percentage | | :--- | :--- | :--- | | Oleg Deripaska (via En+) | Indirectly held | 56.88% (nominal) | | SUAL Partners | Beneficial owner | 25.72% | - The report clarifies that Mr. Oleg Deripaska's effective shareholding in the company cannot exceed 25.57% due to restrictions on his voting rights and equity in the controlling company En+[214] Corporate Governance Practices The company adheres to international and Hong Kong corporate governance standards, largely complying with the HKEX Corporate Governance Code during the review period, though some directors missed extraordinary general meetings due to business conflicts, and the company has adopted and confirmed compliance with a stricter code for directors' securities transactions - The company has complied with most code provisions of the HKEX Corporate Governance Code during the review period[223] - The report discloses that some non-executive and independent non-executive directors were unable to attend the extraordinary general meetings held during the period due to business scheduling conflicts[225]