Russian aluminium giant Rusal's core earnings beat expectations in the third quarter, helped by rising aluminium prices and greater sales of higher margin products.
Third quarter earnings before interest, taxation, depreciation and amortisation (EBITDA) surged by 30 percent to $549 million from $421 million in the third quarter of 2016 Analysts had expected core earnings of $515 million.
The company reported strong financial results on the back of robust aluminium demand and higher prices, Vladislav Soloviev, CEO of RUSAL said in a statement. Value added products made up half of all sales, and it aims to increase this to 60 percent by 2021.
Aluminium prices have been supported by a cut in China's production over winter that has spawned a market deficit and propelled prices.
"Looking ahead towards the end of the year, we maintain our positive forecast for global aluminium industry with the demand to reach 63.1 million tonnes and deficit to widen to 1.1 million tonnes," Soloviev said.
Hong-Kong listed Rusal's earnings have been supported by a stronger aluminium market, a move to quarterly dividend payouts, continuing debt refinancing and repayment, and its potential inclusion in the prestigious MSCI Russia index, Renaissance Capital said in a note.