俄铝(00486) - 2023 - 中期业绩

Financial and Operational Summary In the first half of 2023, the company's performance faced significant pressure, with revenue decreasing by 16.9%, adjusted EBITDA sharply declining by 84.0%, and net profit falling by 75.0% year-on-year, while net debt remained relatively stable Key Financial and Operational Data for H1 2023 | Metric | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue (Million USD) | 5,945 | 7,153 | -16.9% | | Adjusted EBITDA (Million USD) | 290 | 1,807 | -84.0% | | Adjusted EBITDA Margin | 4.9% | 25.3% | -20.4pp | | Net Profit (Million USD) | 420 | 1,680 | -75.0% | | Adjusted Net Profit (Million USD) | 315 | 689 | -54.3% | | Earnings Per Share (USD) | 0.0276 | 0.1106 | -75.0% | | Net Debt (Million USD) | 6,289 | - | +0.4% (compared to end of 2022) | Chairman's Statement The Chairman's letter highlights the company's continued external challenges in the first half of 2023, including high US tariffs, asset seizure in Ukraine, and EU sanction threats, while successfully maintaining profitability and focusing on supply stability and business resilience - The company faces multiple external challenges, including 200% US tariffs, asset seizure at the Nikolaev alumina refinery in Ukraine, and ongoing EU sanction threats[6] - Strategic focus has shifted to ensuring stable raw material supply and business resilience to mitigate supply chain disruptions[6] - The company adopted a sustainability strategy until 2035 in May 2023, focusing on ESG transformation projects to enhance long-term competitiveness[6] - Global aluminum demand is projected to surge by nearly 40% by 2030, with the company committed to being a reliable low-carbon aluminum supplier[7] General Director's Statement Despite severe challenges like reduced raw material resources, global inflation, and international sanctions, the company successfully adjusted business processes, focusing investment on key projects, shifting market focus to Asia and CIS, maintaining a stable financial position, and achieving R&D breakthroughs in low-carbon products - Investment strategy prioritizes completing the Taishet aluminum smelter, ecological modernization of Siberian aluminum plants, and a new alumina refinery project in the Leningrad region[9] - Market strategy successfully redirected commodity exports to Asian countries while vigorously developing the Russian domestic and CIS markets[9] - The company maintains a stable financial position, confirmed by an A+(RU) credit rating from ACRA, and secured sufficient liquidity through RMB bond issuance[10] - R&D advancements include launching low-carbon casting alloys from recycled aluminum, ultra-thin high-strength battery foil, and verifying the near-zero carbon footprint of Allow Inerta inert anode technology[10] Management Discussion and Analysis Market Overview In the first half of 2023, the global aluminum market experienced downward price pressure, with LME aluminum prices retreating, global demand decreasing by 1.5% due to weakness outside China, and a 0.7 million tonne supply surplus, leading to an 18.5% decline in China's downstream aluminum product exports - LME aluminum prices trended downwards in the first half of 2023, falling from a January high of $2,636 per tonne to a June low of $2,096.5 per tonne[12] - Global primary aluminum demand decreased by 1.5% year-on-year, with a 5.5% decline outside China and a 1.5% increase in China[12] - Global primary aluminum supply grew by 2.4% year-on-year, resulting in a 0.7 million tonne market surplus in the first half[13] - China's downstream aluminum product exports significantly decreased by 18.5% year-on-year, impacted by weak demand in overseas construction and packaging sectors[13] Financial and Operating Performance In the first half of 2023, the company's financial performance significantly declined due to falling aluminum prices and rising costs, with total revenue decreasing by 16.9% to $5.945 billion and adjusted EBITDA sharply falling by 84.0% to $290 million, while primary aluminum production slightly increased and alumina production significantly decreased due to supply chain disruptions Operating Data and Financial Summary Key operating data for the first half shows a slight year-on-year increase in primary aluminum production but a significant 23.7% decrease in alumina production, alongside a 13.3% rise in aluminum segment cost per tonne, while financial metrics like revenue, EBITDA, and profit indicators all experienced substantial year-on-year declines, reflecting a deteriorating market environment Key Operating Data (Thousand Tonnes) | Metric (Thousand Tonnes) | H1 2023 | H1 2022 | | :--- | :--- | :--- | | Primary Aluminum Production | 1,913 | 1,891 | | Alumina Production | 2,518 | 3,300 | | Bauxite Production | 6,754 | 6,740 | | Sales of Primary Aluminum and Alloys | 1,935 | 1,763 | Key Financial Data (Million USD) | Metric (Million USD) | H1 2023 | H1 2022 | | :--- | :--- | :--- | | Revenue | 5,945 | 7,153 | | Adjusted EBITDA | 290 | 1,807 | | Profit for the Period | 420 | 1,680 | | Adjusted Net Profit | 315 | 689 | Production Analysis Primary aluminum production increased to 1.913 million tonnes in the first half, primarily due to higher output from the Taishet aluminum smelter, while alumina production sharply decreased by 23.7% to 2.518 million tonnes due to the suspension of the Nikolaev refinery and Australian sanctions, with bauxite and nepheline production remaining stable or slightly increasing - Primary aluminum production increased year-on-year, reaching 1.913 million tonnes, mainly due to increased output from the Taishet aluminum smelter[17] - Alumina production significantly decreased by 23.7% year-on-year to 2.518 million tonnes, primarily due to the suspension of the Nikolaev alumina refinery and supply disruptions caused by Australian government sanctions[18] - Bauxite production slightly increased by 0.2% year-on-year to 6.754 million tonnes, and nepheline production increased by 5.9% to 2.285 million tonnes[19] Revenue Analysis Total revenue decreased by 16.9% to $5.945 billion, primarily driven by an 18.4% decline in core primary aluminum and alloy sales due to a 25.7% drop in average realized prices despite a 9.8% increase in sales volume, reflecting a strategic shift in market focus with increased sales contributions from CIS and Asia Revenue by Product (Million USD) | Product | H1 2023 | H1 2022 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Sales of Primary Aluminum and Alloys | 4,839 | 5,932 | -18.4% | | Sales of Alumina | 181 | 299 | -39.5% | | Sales of Foil and Other Aluminum Products | 279 | 286 | -2.4% | | Other Revenue | 646 | 636 | +1.6% | | Total Revenue | 5,945 | 7,153 | -16.9% | Revenue Share by Region | Region | H1 2023 Share | H1 2022 Share | | :--- | :--- | :--- | | Europe | 31% | 40% | | CIS | 33% | 29% | | Americas | 2% | 7% | | Asia | 33% | 23% | Cost and Profit Analysis Cost of sales increased by 9.6% to $5.217 billion, primarily driven by a 54.8% increase in alumina procurement costs and a 9.7% rise in energy costs, leading to a sharp drop in gross profit from $2.391 billion to $728 million and a significant 84.0% decrease in adjusted EBITDA to $290 million, while profit contribution from Norilsk Nickel also substantially declined - Cost of sales increased by 9.6% year-on-year, primarily due to a 54.8% increase in alumina procurement costs and a 9.7% rise in energy costs[29][30] - Adjusted EBITDA significantly decreased from $1.807 billion to $290 million, a 84.0% year-on-year decline, with the adjusted EBITDA margin falling from 25.3% to 4.9%[32] - Share of profit from associate Norilsk Nickel decreased from $1.317 billion to $212 million, a 83.9% year-on-year reduction[35] - Profit for the period was $420 million, a substantial 75.0% decrease from $1.680 billion in the prior year[38] Segment Reporting The core Aluminum segment's performance significantly deteriorated, with segment EBITDA decreasing from $2.218 billion to $373 million and its margin sharply falling from 39.5% to 8.0%, while the Alumina segment showed some improvement, turning its segment EBITDA positive at $48 million from a prior year loss, though still recording a segment loss of $22 million Core Segment Performance (Million USD) | Segment | Metric | H1 2023 | H1 2022 | | :--- | :--- | :--- | :--- | | Aluminum | Segment Revenue | 4,676 | 5,622 | | | Segment Result | 205 | 2,053 | | | Segment EBITDA | 373 | 2,218 | | | Segment EBITDA Margin | 8.0% | 39.5% | | Alumina | Segment Revenue | 1,036 | 1,453 | | | Segment Result | 22 | (43) | | | Segment EBITDA | 48 | (2) | | | Segment EBITDA Margin | 4.6% | (0.1%) | Capital Expenditure, Debt and Cash Flow In the first half of 2023, capital expenditure slightly decreased to $417 million, primarily for maintenance, while the company managed debt through new credit facilities and bond redemptions, maintaining stable net debt, and operating cash flow improved to a net inflow of $236 million, though overall cash and cash equivalents decreased due to investing and financing outflows - Total capital expenditure for the first half was $417 million, a decrease from $465 million in the prior year, primarily allocated to repairs and re-equipment[45][46] - The company undertook significant debt management activities, including signing new credit facilities of up to $4.4 billion with Russian banks and redeeming two international bonds totaling over $800 million[50] - Net cash inflow from operating activities was $236 million, a significant improvement compared to a net outflow of $958 million in the prior year[51] - Net cash outflow from financing activities was $1.443 billion, mainly due to loan repayments, leading to a decrease in cash and cash equivalents from $3.193 billion at the beginning of the period to $1.485 billion at period-end[51][52] Risks, Governance and Other The company faces key business risks including commodity market volatility, supply chain disruptions, reliance on power, foreign exchange fluctuations, and geopolitical factors, while the Audit Committee has reviewed the interim financial report for compliance, and the company made progress in product innovation, sustainability, and financing during the period - Key business risks identified by the company include metal demand volatility, supply chain disruptions, reliance on power and transportation, foreign exchange risk, and regulatory and political risks associated with multiple jurisdictions[63][64] - The Audit Committee, comprising three independent non-executive directors, reviewed the interim financial statements and deemed them adequately disclosed and compliant with applicable standards[61] - Significant events in the first half include: launching low-carbon casting alloys from recycled aluminum, publishing the 2022 Sustainability Report, board approval of the 2035 Sustainability Strategy, confirmation of an A+(RU) credit rating, and international verification of the carbon footprint for the ALLOW INERTA brand[67][68] Independent Auditor's Report The auditor issued a standard review conclusion on the company's interim condensed consolidated financial statements, prepared in accordance with IAS 34, but included an "Emphasis of Matter" paragraph highlighting significant uncertainties regarding the company's going concern ability due to geopolitical tensions, sanctions, and market volatility, without modifying their opinion - The auditor concluded that nothing came to their attention to suggest the interim financial statements were not prepared in all material respects in accordance with International Accounting Standard 34[72] - The report includes an "Emphasis of Matter" paragraph, drawing attention to significant uncertainties that may cast substantial doubt on the Group's ability to continue as a going concern due to geopolitical tensions, sanctions, and market volatility[72] - The auditor explicitly stated that their review opinion was not modified in respect of the aforementioned "Emphasis of Matter"[72] Interim Condensed Consolidated Financial Statements Key Financial Statements The financial statements for the first half of 2023 show a significant decline in company performance, with the income statement reflecting substantial decreases in both revenue and profit, the statement of financial position indicating a reduction in total assets and equity, and the cash flow statement revealing an overall decrease in cash levels despite improved operating cash flow, due to significant debt repayments Summary of Interim Condensed Consolidated Income Statement (Million USD) | Metric | H1 2023 | H1 2022 | | :--- | :--- | :--- | | Revenue | 5,945 | 7,153 | | Gross Profit | 728 | 2,391 | | Result from Operating Activities | (33) | 1,532 | | Profit Before Tax | 269 | 2,364 | | Profit for the Period | 420 | 1,680 | Summary of Interim Condensed Consolidated Statement of Financial Position (Million USD) | Metric | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Total Assets | 21,425 | 24,631 | | Total Liabilities | 10,148 | 12,324 | | Total Equity | 11,277 | 12,307 | | Net Current Assets | 5,015 | 5,524 | Summary of Interim Condensed Consolidated Cash Flow Statement (Million USD) | Metric | H1 2023 | H1 2022 | | :--- | :--- | :--- | | Net Cash from Operating Activities | 236 | (958) | | Net Cash Used in Investing Activities | (398) | 1,244 | | Net Cash Used in Financing Activities | (1,443) | (975) | | Net Change in Cash and Cash Equivalents | (1,605) | (689) | Summary of Notes to the Financial Statements The notes to the financial statements provide detailed explanations, confirming the company's "going concern" basis despite significant uncertainties, highlighting the Aluminum segment as the core revenue and profit driver with a significant performance decline, detailing the substantial investment in Norilsk Nickel, outlining the debt structure primarily composed of secured bank loans and bonds, and disclosing contingent liabilities related to legal, environmental, and tax matters - Going Concern Assumption: Management acknowledges significant uncertainties regarding the ability to continue as a going concern due to sanctions, supply chain issues, and market volatility, but still prepares financial statements based on this assumption[97] - Segment Performance: The Aluminum segment is core, contributing $5.119 billion in total segment revenue and $141 million in segment profit, while the Alumina segment generated $2.383 billion in revenue and recorded a $20 million loss[105] - Investment in Associates: As of June 30, 2023, the company's investment in Norilsk Nickel had a carrying amount of $3.734 billion, with a share of profit from the associate of $212 million in the first half[130] - Loans and Borrowings: Total loans and borrowings amounted to $7.776 billion as of June 30, 2023, with $6.499 billion classified as non-current and $1.277 billion as current[152] Compliance and Governance Information This section discloses information required by the Hong Kong Stock Exchange Listing Rules, covering director changes, shareholdings of directors and major shareholders, confirmation of compliance with most Corporate Governance Code provisions, and details of loan agreements with change of control clauses, while major shareholder holdings remained stable - Mr Semen Mironov was appointed as a non-executive director on June 28, 2023, succeeding Mr Marco Musetti who retired[177] Major Shareholder Holdings (as of June 30, 2023) | Shareholder Name | Capacity | Number of Shares Held (Long Position) | Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | En+ | Beneficial Owner | 8,641,888,022 | 56.88% | | SUAL Partners | Beneficial Owner | 3,907,527,611 | 25.72% | - The company confirmed compliance with the code provisions of the Hong Kong Stock Exchange Corporate Governance Code during the review period, with the exception of some non-executive directors unable to attend the general meeting due to scheduling conflicts[184][185]