OAO Alrosa, Russia’s state-run diamond miner, said profit more than doubled last year after average prices for the rough stones surged by 60 percent.
Net income rose to 26.7 billion rubles ($860 million) from 11.8 billion, Mirny, Siberia-based Alrosa said in a statement on its website today. Sales expanded 21 percent to 138 billion rubles. Alrosa rose 0.9 percent to 24.60 rubles at 10:45 a.m. in Moscow trading. The benchmark Micex Index was 0.2 percent lower.
The average price of rough diamonds used in jewelry gained to $197 a carat in 2011 from $123, Alrosa said. Earnings before interest, taxes, depreciation and amortization climbed 87 percent to 65.2 billion rubles, while the Ebitda margin reached 47 percent.
Rough diamond output grew 1 percent to 34.6 million carats. De Beers, Alrosa’s largest rival, produced 31.3 million carats in the period, it said in a Feb. 10 statement. Industrial diamonds of non-gem quality accounted for a third of Alrosa’s output and sold at an average price of $7.70 a carat, the company said.
Alrosa’s debt declined by 6 percent to 95.5 billion rubles and its debt-to-Ebitda ratio dropped to 1.5 from 2.9.