MOSCOW, March 16 The new chief executive of
diamond miner Alrosa said on Thursday he would remain
committed to the Russian state-controlled company's strategy,
which has focused on mining, selling non-core assets and
increasing production organically.
Russia appointed Sergey Ivanov Jr, son of the former head of
the Kremlin administration, as the new head of the world's
largest producer of rough diamonds this month, prompting some
analysts to ask whether he would start diversifying into diamond
polishing or other commodities.
Alrosa and Anglo American's De Beers unit together
produce about half the world's rough diamonds.
"I would like to assure you that I am committed to this
strategy and intend to make every effort to deliver it," Ivanov
told a conference call with analysts on Thursday, organised to
discuss Alrosa's 2016 financial results.
Ivanov, 36, had served as a senior vice-president of
Russia's largest lender Sberbank since April 2016 and
headed insurer SOGAZ before that.
Earlier Alrosa reported a fourfold increase in its
2016 net profit to 133.5 billion roubles ($2.3 billion) thanks
to higher sales and a weaker rouble.
Its revenue jumped 41 percent year-on-year to 317.1 billion
roubles with earnings before interest, taxation, depreciation
and amortisation (EBITDA) up 49 percent to 176.4 billion
Igor Kulichik, Alrosa's Chief Financial Officer, told the
call that the group had cut its diamond stockpile by 3 million
carats to 19 million carats worth $1.8 billion in 2016 and does
not plan to reduce it further in 2017.
The company plans to produce and sell 39 million carats of
diamonds this year, he added. Its 2017 capital expenditure is
expected at 36.5 billion roubles.
($1 = 57.9725 roubles)
(Reporting by Diana Asonova; Writing by Polina Devitt; Editing
by Alexander Smith)