ALROSA’s revenue for the first six months of 2018 increased 8 percent to RUB 168 billion ($2.48 billion) in a year-on-year comparison with 2017. Net profit for the period grew 19 percent to RUB 58.3 billion ($860 million) while EBITDA (earnings before income tax, depreciation and amortisation) for the period grew 22 percent to EUB 89.1 billion ($1.3 billion).
The second quarter of this year, however, saw revenue decrease 25 percent from the first quarter to RUB 72 billion ($1.06 billion), mainly due to a 32 percent drop in sales when compared with the high numbers in the first quarter. Average selling prices, however, drove a 2 percent revenue growth in a year-on-year comparison.
Chief Executive Sergey Ivanov commented, "The company delivered strong financial results, reaffirming its industry leadership both in profitability and market share. Higher diamond prices and stringent cost control along with a softer ruble drove our EBITDA margin up to 53 percent. Free cash flow expanded by 23 percent to RUB 62 billion ($914.7 million).”
He added, “ALROSA maintained its strategic focus on core assets. In early 2018, we disposed of non-core gas assets at an auction for RUB 30.3 billion ($447 million), with the proceeds used to bring down the company's debt. As at the end of June 2018, our net debt-to-EBITDA ratio was one of the lowest in the industry at 0.04x.”
He went on to say, “The company's ability to generate free cash flow enables us not only to bring our leverage down, but also to share cash with our shareholders in the form of dividends. In August, the Supervisory Board approved a new dividend policy with allows to pay dividends of up to 100 percent of free cash flow twice a year depending on the company's leverage."