MOSCOW, December 4 (RIA Novosti) – Russia’s largest diamond miner Alrosa on Tuesday posted a 7 percent year-on-year decrease in its IFRS net profit to 8.623 billion rubles ($279 million) on weaker demand and falling sales volumes.
The company’s revenues slumped by 32 percent to 27.791 billion rubles ($899 million) and EBITDA declined by 44 percent to 12.717 billion rubles ($411 million), with the EBITDA margin falling from 55 percent in the third quarter of 2011 to 46 percent in July-September 2012.
Diamond output increased by 31 percent to 9.1 million carats in the third quarter of 2012 compared to the same period last year.
In the third quarter of 2012, gem-quality diamond prices were down 9 percent compared to 3Q 2011 “influenced by weaker demand,” while prices for non-gem quality diamonds decreased by 27 percent, the company’s statement said.
In the first nine months of 2012, Alrosa’s IFRS net profit slumped by 30 percent year-on-year to 24.839 billion rubles ($803 million).
The company’s nine-month revenues declined by 3 percent to 104.319 billion rubles ($3.4 billion), EBITDA fell by 17 percent to 48.241 billion rubles ($1.6 billion), with the EBITDA margin decreasing to 46 percent from 54 percent a year earlier.
Sales volumes decreased by 21 percent in January-September 2012 year on year due “weaker demand in 3Q 2012.”
Alrosa is one of the world's largest diamond companies, accounting for 25 percent of global production.
