Rusal posts near three-fold jump in annual profit on rising demand

Russia’s Rusal on Friday reported a near-three fold jump in its annual earnings, reflecting higher prices for both aluminum and alumina owing to a rise in demand for the products, which are critical in the race for decarbonization.

Hong Kong-listed Rusal, the world’s largest aluminum producer outside China, posted a net profit of $803 million for the year ended December 31, 184.8% higher compared with the $282 million reported in the year-ago period.

Rusal flagged that the transition towards greener forms of energy accelerated in 2024 amid tighter global emission standards, growing consumer demand for sustainable products and the rising importance of environmental, social and governance (ESG) criteria.

Consumption of aluminum in the transportation industry remained the largest in 2024 and continued to gain pace despite a slip in overall vehicle production during the year.

“The EV market is expanding due to stricter emissions regulations, government incentives, and advancements in battery technology,” Rusal said in a filing to the Hong Kong exchange.

The company — one of the few Russian firms left on any of the world’s exchanges — noted that the development of charging infrastructure and an increase in consumer demand for sustainable transportation are fueling expansion in the EV market.

Rusal said its results were prepared assuming that it would continue as a going concern but warned that ongoing geopolitical uncertainty, including potential sanctions imposed by the United States, European Union and other countries, may result in “significant limitations”.

(By Rishav Chatterjee and Anastasia Lyrchikova; Editing by Alan Barona)