Alrosa 2009 Sales Decline to $2.2 Billion
April 06, 10
 Alrosa is looking at a brighter year in 2010 after a suffering from limited sales and large debts in 2009 |
The results show that fourth quarter profits also increased, as the rough diamond sector enjoyed a revival leading to an increase in prices.
The cost of sold goods fell 4.65 percent to 37.38 billion rubles ($1.28 billion) and gross profit declined to 26.47 billion rubles ($905 million) from 34.78 billion rubles ($1.2 billion) in 2008. Pre-tax profit more than halved to 2.15 billion rubles ($73.6 million). Alrosa mined $2.244 billion worth of diamonds in 2009.
Alrosa ended the fourth quarter of 2009 with a net profit of 11.16 billion rubles ($ billion), compared with 5.86 billion rubles ($382 million) in the third quarter. The increase in fourth quarter profit was helped by an increase in the value of its holding in mining subsidiary Alrosa-Nyurba “to their market value,” the report added.
Alrosa expects to mine 33.54 million carats in 2010, 2.3 percent more than it did in 2009. Sales revenue is expected to rise to 92.37 billion rubles ($3.16 billion), as Alrosa “shifts” stockpiled diamonds valued at $1.326 billion at the end of 2009.
Alrosa expects to generate a revenue of $929 billion in the first quarter of 2010 and a net profit of about 2 billion rubles ($68.3 million). It mined 8.6 million carats in the quarter, a 6.5 percent year-over-year reduction.
First quarter sales are ten times what Alrosa sold the year before, when it sold diamonds only to Gokhran. Revenue in the first quarter last year totaled $166.5 million and the net loss amounted to $459 million.
Alrosa did not sell any diamonds to Gokhran in the first quarter of 2010. It sold $240 million to Russian enterprises and $696 million to foreign clients.
Alrosa expects to sell about $900 million worth of diamonds in the second quarter of 2010.
Alrosa is continuing its efforts to form a system of long-term contracts. It currently has long-term contracts with Belgian and Indian companies.