Rusal profit boosted as Aughinish Alumina production up 61%

PRODUCTION AT Aughinish Alumina, the alumina refinery on the Shannon estuary, increased by 61 per cent in the first six months of the year compared to the same period last year, boosting the profits of its Russian parent company Rusal.

Results from Rusal show that output at the Limerick plant rose to 9.1 million tonnes during the first half of 2010 compared to 5.6 million tonnes during the same period in 2009. The jump in production was due in part to the restoration of operations at the refinery between September 2009 and March 2010.

As with other refineries owned by Rusal, production at Aughinish had been cut at the plant due to the sharp decline in demand, and price, for aluminium and alumina.

Staff at the Limerick plant were placed on shorter working hours last year as a result of the reduction in production levels. A spokeswoman for Rusal yesterday said that production at the Irish plant had now been restored in full.

Aughinish Alumina Ltd employed 451 workers in 2009, down from 472 in 2008, according to the most recent accounts for the company.

Results from Rusal show the company made a net profit of $1.2 billion for the first half of 2010, compared to a net loss of $868 million for the first half of 2009, beating forecasts.

The increase in profits and revenue was mainly due to higher aluminium prices. The company said it expected prices of the metal to rise from next year and to remain steady until the end of 2010.

AC Rusal, the world’s largest aluminium producer, is controlled by Russian businessman Oleg Deripaska. This year the company listed on the Hong Kong stock exchange, raising $2.24 billion.

In 2007 Mr Deripaska’s Rusal merged with SUAL and Glencore, the owner of Aughinish. The IPO prospectus valued Aughinish Alumina at over $1.2 billion, making the Limerick operation the most valuable of the group’s 14 aluminium smelters and alumina refineries.

The most recent accounts for Aughinish Alumina Ltd show the company made an operating profit of €13.5 million in 2009, compared to an operating loss of €390,000 in the previous year.