Moscow: ALROSA’s revenue and profit soared in the first half, boosted by stronger global rough demand and an 11 percent weakening of the Russian ruble.
Sales in the six months to June 30 leapt 42 percent to $2.87 billion (RUB 186.67 billion), the miner reported. Diamond sales grew 45 percent to $2.7 billion, with the remainder of revenue coming from other streams such as its gas and transport divisions. Profit soared 91 percent to $1.39 billion.
Sales to Belgium, ALROSA’s biggest trade partner, jumped 40 percent, with revenue from India and Israel also increasing as the midstream replenished inventory and retailers restocked in response to strong holiday sales.
Results were “affected by the moderately steady diamond market” and depreciation in the ruble against the U.S. dollar, said Andrey Zharkov, ALROSA’s chief executive officer. “ALROSA maintains a conservative outlook on the diamond market and executes permanent cost control,” the executive cautioned.
The market’s rebound in the first half, from a sluggish second half last year, was also reflected in sales at De Beers that jumped 8.2 percent in the six months to June 30.