Rough diamond sales climb 15 percent for Alrosa
April 22, 2014
Moscow--Though diamond prices were stagnant, the volume of rough sold by Alrosa in 2013 was enough to offset it, resulting in increased year-over-year sales.
According to full-year financials recently released by the state-owned diamond mining company, it sold 38.0 million carats of rough diamonds in 2013, a 15 percent increase year-over-year.
Total revenue was up 12 percent, reaching $4.72 billion.
Net profit, however, fell 5 percent year-over-year due to increased exchange loss and re-valuation of the dollar-denominated part of Alrosa’s credit portfolio as a result of a weakening ruble.
“Despite the lack of price growth on the diamond market, Alrosa managed to increase revenue and retain the high level of profitability,” CEO Fyodor Andreev said.
He said the company has implemented plans to build new production facilities and modernize existing ones, and noted that the company’s initial public offering on MICEX (Moscow Interbank Currency Exchange), the Moscow stock exchange, showed a “high level of confidence in the company from long-term investors and showed capitalization growth prospects.”
RELATED CONTENT: US investors buy up Alrosa IPO shares
Alrosa launching its IPO in October and raised a total of $1.3 billion, with U.S. investors buying a total of 60 percent of the shares sold, according to news reports.
Analysts said while the Russian diamond miner’s IPO was not a “dot-com story”--meaning per-share prices weren’t exceptionally high--it did receive a satisfactory level of investment.