HONG KONG, March 28 Russian aluminium producer
United Company Rusal Plc posted a $3.2 billion loss
for 2013, hurt by lower prices and restructuring charges, and
said it was in still in talks to renegotiate part of its debt.
The result, which included a $1.9 billion charge for
impairment and one-off restructuring, was up from a $528 million
loss in the previous year, the company said its results
statement on Friday. Revenue fell 10.4 percent to $9.77 billion.
Aluminium prices are trading around their lowest levels in
more than four years amid a global oversupply that has pushed
stocks of the metal in London Metal Exchange (LME) warehouses to
Rusal's shares fell as much as 4 percent after the result
Rusal, which won a court ruling on Thursday derailing LME
plans to cut logjams in warehouses, said the average LME
aluminium price fell 8.6 percent in 2013 to $1,845 per tonne.
The company's aluminium output fell nearly 8 percent in 2013
to 3.857 million tonnes due to the curtailment of inefficient
Rusal, which has been in talks on restructuring its debt of
about $10 billion, said it has completed restructuring
negotiations with state lender Sberbank on $4.9
billion of debt and Gazprombank on $660 million.
It was in advanced talks on $3.7 billion of PXF facilities
but expected to breach certain covenants, resulting in a
default, as the talks were expected to continue past the expiry
of a covenant holiday on March 31.
Rusal said management believed the facilities would be
renegotiated "in due course" and it should have sufficient
liquidity to meet its obligations as they fall due.
It had also secured additional financing from a major
customer and identified non-core assets it could sell if
aluminium prices fell further.
Rusal said it expected global demand for aluminium will
trend upward, with demand expected to grow 6 percent to 55
million tonnes in 2014.
China, the world's top aluminium consumer and producer, was
expected to cut production by about 3 million tonnes in 2014 and
the Chinese market is expected to be balanced this year, it
Analysts polled by Reuters in January predicted a surplus in
the global aluminium market, including China, tightening to
568,400 tonnes this year and 500,000 tonnes in 2015.
Major global aluminium producer Alcoa Inc reported a
loss for the fourth quarter of 2013 after weaker aluminium
prices led to a $1.7 billion non-cash impairment charge on
China's top producer, Aluminum Corp of China Ltd (Chalco)
, swung to a yearly profit in 2013,
but warned it faces challenges in the short term as a glut of
some products grips the sector.
(Reporting by Polly Yam and Polina Devitt in MOSCOW; Additional
reporting by the Hong Kong bureau; Editing by Richard Pullin)