Rusal's 2024 Earnings Surge Despite Sanctions and Market Headwinds

Rusal

Aluminium giant increases EBITDA by 90% amid sanctions, falling costs, and domestic market pivot

Russia’s top aluminium producer Rusal reported a dramatic earnings increase in 2024, despite facing international sanctions and weak global demand. The company’s EBITDA soared to $1.49 billion, a 90% jump year-on-year, thanks to lower production costs and a strategic pivot to domestic markets.

Rusal’s revenues dipped slightly by 1.1% to $12.08 billion, but net profits surged to $803 million, up from $282 million in 2023. The producer boosted aluminium output to 3.99 million tonnes, up 3.7%, and alumina production by 25% to 6.43 million tonnes.

Notably, Rusal acquired a 30% stake in Hebei Wenfeng New Materials in late 2023, securing access to 1.4 million tonnes per year of alumina in China’s Hebei province. The company also lifted bauxite output by 18.8% to 15.89 million tonnes.

Sanctions Drive Market Realignment

In April 2024, the US and UK banned exchange-traded Russian aluminium, copper, and nickel, barring imports and services tied to these metals. The London Metal Exchange (LME) subsequently banned Russian-origin metals from its warehouses, intensifying pressure on Rusal.

Despite these barriers, Rusal successfully reorganized its export channels and expanded domestic sales, minimizing disruption. The company also lowered its overall cost of sales by 11.3%, aided by falling raw material and energy costs.

Aluminium prices rose 3.3% on average in 2024, while alumina prices surged nearly 47% due to global supply constraints.

Outlook Remains Cautious

Rusal noted that the global aluminium industry remained under pressure from volatile input prices, sluggish demand, and high interest rates. Yet, by shifting to local markets and improving operational efficiency, the company weathered macroeconomic turbulence and reinforced its production base.