Alrosa’s Q1 revenues up 43%

Alrosa’s revenues at the close of its first quarter of 2014, recorded a 43 percent increase (on y-o-y basis) to RUB56.3 bn. The mining giant attributes this to increased rough diamond sales volume and the ruble weakening.

EBITDA grew 1.6 times in Q1 2014 y-o-y and reached RUB26.1 bn. EBITDA margin increased to 46 percent.

Net profit in the said three months this year valued RUB6.1 bn, dropping 3 percent over the same quarter last year. The company notes that this period saw increased exchange loss as the result of revaluation of the dollar denominated part of the Group's credit portfolio following the ruble weakening in Q1 2014.

Fyodor Andreev, ALROSA CEO, commented: “Positive market dynamics in Q1 2014allowedALROSA to deliver record-high financial results, that have enabled ALROSA capitalization growth of 20% since the SPO on MICEX in 2013.”

Free cash flow in Q1 2014 increased 2.5 times over the same quarter last year, and amounted to RUB20.1 bn, as the result of increased operating profit and sell-down of inventories.