Alrosa Profits Slip after Halt in Rough Sales
December 14, 23
(IDEX Online) - Alrosa has reported a 7 per cent drop in net profit during the first nine months of 2023, down to $975m (RUB 87.9bn).
Russia's state-controlled miner said Q3 revenue was $871m (RUB78.5bn), down 7 per cent on the Q2 revenue of $936m (RUB 92.51bn) previously reported. But it was up 55 per cent on revenue for Q3 2022.
Alrosa halted rough sales during September and October in a move designed to "reverse the existing trend of diminishing demand". The first month of that ban is captured in its Q3 financial indicators, as reported by Russia's Interfax news agency.
The company was selling $4bn of rough diamonds annually before its invasion of Ukraine in February 2022. Limited Western sanctions appear to have had no impact, although new G7 restrictions are to be introduced from 1 January 2024.
Alrosa's first-half sales for 2023 were RUB 188.2 billion ($1.9 bn), up 0.2% from RUB 187.8bn ($1.9 bn), for H1 of 2022, and up 3.5 per cent on H1 of 2021. Net profit for H1 2023 was down 35 per cent year-on-year to RUB 55.57bn ($562.5m).
Pic courtesy Alrosa, shows the Verkhne-Munskoye deposit