Russia's Rusal posts H1 net loss, sees weak aluminium prices in 2020

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13/08/2020 08:43

MOSCOW, Aug 13 (Reuters) - Russian aluminium giant Rusal
 0486.HK  said on Thursday its recurring net loss totalled $76
million in the first half of 2020 after a profit of $666 million
a year ago as the novel coronavirus outbreak hit demand.
    Hong-Kong listed Rusal, the world's largest aluminium
producer outside China, said that it expected global aluminium
prices to continue to remain at depressed levels in 2020.
    The company posted adjusted earnings before interest, tax,
depreciation and amortisation (EBITDA) of $219 million for six
months ending June 30, down 58.5% from a year ago, while revenue
fell 15% to $4.0 billion.
    Rusal's shares were down by 0.6% on Thursday -
underperforming the Hong Kong Hang Seng Commerce & Industry
Index  .HSNC , which was up 0.6%.
    Some analysts warned that Rusal's financial results for the
first-half of 2020 would be weak due to low aluminium prices and
despite dividends it received from mining giant Norilsk Nickel
 GMKN.MM , in which it owns 27.8%.  urn:newsml:reuters.com:*:nL5N2EY1QS
    Rusal, whose net debt was at $6.0 billion at the end of
June, relies on these dividend payments in tough years, but
these payments are becoming the subject of debate with
Nornickel's largest shareholder - Interros Holding, which
manages assets of businessman Vladimir Potanin.  urn:newsml:reuters.com:*:nL8N2FC4VE
    The two have a history of shareholder conflicts over the
size of Nornickel's dividend payments, management and strategy.
Potanin is willing to reduce Nornickel's dividend amid the
COVID-19 and a large fuel spill which happened at Nornickel's
Arctic power plant in May. 
    Nornickel's net profit fell to $45 million in January-June
as it set aside $2.1 billion for potential environmental damage
claim after the spill, it said earlier this week.  urn:newsml:reuters.com:*:nL8N2FD42N

 (Reporting by Polina Devitt; editing by)
 ((Polina.Devitt@thomsonreuters.com; +7 495 775 12 42; Reuters
Messaging: polina.devitt.reuters.com@reuters.net))