Rising Rough Prices Propel Alrosa H1 Results Past Target

Alrosa’s revenue in the first six months of 2010 swelled to RUB 53.68 billion ($1.78 billion), quadrupling from the RUB 13.41 billion in sales made in the first half of 2009, according to a financial statement released on Tuesday.

After announcing preliminary results in early July, Alrosa confirmed its half-year figures yesterday.

Alrosa claims that rough diamond sales in the six-month period totaled $1.9 billion, of which 31 percent, or $589 million, were to long-term contract clients. The rough diamond sales figure is higher than the total revenue for the period and may be erroneously stated.

The Russian firm is aiming for $3.3 billion in rough diamond sales this year.

Diamond production was flat at 16.6 million but production costs increased to RUB 28 billion ($939 million), a 240 percent leap in cost.

Gross profit jumped 14 fold to RUB 25.6 billion ($858 million), RBC reported.

Alrosa's revenue exceeded its target by 0.7 percent, due mostly to runaway diamond prices.

Net profit for the period is RUB 2.5 billion ($82.8 million) the company said in its preliminary results announcements. According to RBC, net profit stood at RUB 2.96 billion ($98 million).