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To: LoneClone who wrote (66659)	8/31/2010 10:21:47 AM
From: LoneClone	Read Replies (1) \| Respond to of 194999

UPDATE 1-RUSAL Q2 net beats f'casts, plans Russian listing Tue Aug 31, 2010 1:26am GMT af.reuters.com * Q2 net $1.02 bln, beats average f'cast of $478 mln * H1 net at $1.27 bln vs year ago losses of $868 mln * Says intends to issue Russian depository receipts by yr end * To cut HK lot size to boost trading activities * Names new CFO, former CFO to head department of control (Adds details) HONG KONG, Aug 31 (Reuters) - Russia's United Company RUSAL (0486.HK: Quote), the world's top aluminium producer, said on Tuesday it returned to the black in the second quarter as revenue increased, and sees steady prices for the lightweight metal for the rest of the year. RUSAL (RUAL.PA: Quote), headed by Russian oligarch Oleg Deripaska, enjoys a competitive cost advantage over Aluminum Corp of China (2600.HK: Quote) (Chalco) and other rivals due to cheap hydro-power in Russia and favourable taxation. Its quarterly earnings beat Chalco, China's largest aluminium maker, which made a net loss of 96.7 million yuan ($14.2 million) in the second quarter due to higher costs and a supply glut at home. [ID:nTOE67L00D] China, which is the world's largest producer and consumer of primary aluminium, has been the primary driver of global industry growth, accounting for 42 percent of consumption globally in 2010, analysts estimated. Prices for aluminium, which is widely used in packaging, auto, construction and other industries, are expected to remain volatile in the second half due to uncertainties over the global economy. [ID:TOE67N017] "Continued recovery in global markets should generate good opportunities for growth in demand for aluminium as it is a base metal required to support key industries and growing economies," RUSAL's CEO Deripaska said in a statement. RUSAL forecasts aluminium prices to remain at current levels for the remainder of 2010 on strong demand for aluminium from China and the recovery of physical demand in the United States, Europe and Japan. It expects Russian aluminium consumption to rise about 50 percent in 2010 to 800,000 tonnes and grow by another 30 percent in 2011 to more than 1 million tonnes. The company said it had appointed Evgeny Kornilov, formerly chief financial officer (CFO) of X5, as CFO. Tatyana Soina, who previously served as CFO of RUSAL, will head a newly formed department of control, internal audit and business coordination. CUT LOT SIZE RUSAL also said it will reduce its stock's board lot size in Hong Kong to 6,000 shares per hand from 24,000 shares from Oct 4. The company's heavy debt and big lot size have been a drag on its stock, which ended Monday up 0.66 percent at HK$7.65 but is still well below its IPO price of HK$10.8 per share in January. The company intends launching a Russian depository receipts programme to be listed on MICEX Stock Exchange and Russian Trading System Stock Exchange by the end of 2010. Analysts said RUSAL may sell its 25 percent stake in Norilsk Nickel (GMKN.MM: Quote), which it bought for $13 billion and that could help lower its debt. RUSAL posted a net profit of $1.02 billion for the three months ended June, beating an average profit forecast of $478 million from eight analysts polled by Reuters. The net compared with a loss of $230 million a year ago and was up from the first quarter profit of $247 million. It earned a net profit of $1.27 billion in the first half versus a loss of $868 million a year ago, the company said in a filing to the Hong Kong stock exchange. Revenue rose 42 percent to $5.32 billion in the first half due to increased sales of primary aluminium and alloys. RUSAL's aluminium output rose 5 percent in the second quarter from the first quarter and alumina production rose 3.7 percent in the second quarter. Its aluminium cash operating costs fell by 2.3 percent from the first quarter to an average of $1,666 per tonne for the second quarter of 2010. This compared with Chalco's cash costs of 12,141 yuan ($1,893) per tonne in the same period, according to Reuters calculations based on figures released by Chalco. In July, RUSAL secured a 50 billion rouble ($1.7 billion) loan for the completion of a smelter and power plant. The first start-up complex will have a capacity of 147,000 tonnes of aluminium per year and construction will resume in September with a view to launch in 2013. (Reporting by Alison Leung; Editing by Ken Wills)