The world’s largest aluminium producer plans to nearly double its capital spending this year to boost capacity in the face of growing demand.
Its profit in 2010 was $2.8bn compared to $821M for 2009.
Rusal Chief Executive Oleg Deripaska said the company's strong net profit growth was driven by significant increases in demand for aluminium and metal prices, and the company expects global demand to grow 8% to 43.8Mt this year.
Rusal's aluminium output in the 12 months ended December 31 rose 3% to 4.08Mt from 3.95Mt the previous year, while alumina output rose 8% to 7.84Mt from 7.28Mt. Its bauxite output rose 4% to 11.8Mt, from 11.3Mt
The company also said it plans to increase its capital spending to $692M this year from $367M the year before to expand its production capacity. It will restart production at the Kirkvine plant in Jamaica and restart construction of the Bemo and Taishet smelters, both in Russia, this year.
It expects strong global demand for aluminium to continue in 2011 with 8% growth to 43.8Mt. The emerging markets of China, Brazil, India and Russia will be driving the growth of consumption in 2011.
Total underlying demand in China will reach 18.5Mt in 2011 and remain strong, with aluminium consumption growth expected to be 12%. The transportation industry remains the key driver of aluminium growth in China.
It expects prices to maintain at the level of $2500 to $2600/t throughout 2011 and be supported by positive underlying demand, whilst the continuing weakness of the US dollar supports the investment into tangible assets from investors.
It said it is ahead of schedule on its debt payments. Its net debt fell to $11.5bn in 2010 from US$13.63bn the year before.
