August 25, 2017 / 12:35 AM / a year ago

Higher aluminium prices lift Rusal Q2 core earnings

Aug 25 (Reuters) - Russian aluminium giant Rusal reported a 48 percent rise in second-quarter core earnings on Friday due to a higher aluminium price, and pointed to a positive outlook for the second half.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose to $510 million from $344 million in the same quarter a year ago, in line with a Reuters survey of analysts at six banks for $507 million.

“Looking ahead to the second half of the year, our outlook for the aluminium industry is positive. Consumption of aluminium is set to remain healthy until the end of the year, increasing by 5.9 percent for the whole 2017,” Hong Kong-listd Rusal said in a statement.

“On the supply side, the spotlight is now on China following the recent announcements from Chinese regulators regarding capacity cuts, which may result in global market deficit widening to around 1 million tonnes in 2017,” it said.

Rusal last month reported a 4.6 percent rise in second-quarter sales to 1.0 million tonnes and a 22 percent jump in average aluminium prices to $2,087 per tonne.

London aluminium prices are up 25 percent this year due to stronger demand and expectations that top producer China will reduce output during the winter as Beijing intensifies its war on pollution. (Reporting by James Regan in SYDNEY and Melanie Burton in MELBOURNE; Editing by Richard Pullin)

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