Alrosa net profit declines 25.7% in first half of 2006

The Russian state-owned miner, Alrosa, reported a 25.7 percent decline in its net profits for the first half of 2006. Calculated according to Russian Accounting Standards, profits fell to 4.8 billion rubles (approximately $177 million).

According to a report in Rio Novosti, Alrosa said that earnings had decreased 2.7 percent in the reporting period, to 36.41 billion rubles (about $1.3 billion), and that pre-tax profit had fallen 11.2 percent, to 7.6 billion rubles (about $281 million). The company attributed the lower profits to reduced demand.

In 2005, the company's sales totaled $3.1 billion, including diamonds mined in Africa.

Alrosa accounts for almost 100 percent of diamonds mined in Russia, and for about 20 percent of world diamond output.