Alrosa Says Diamond Price Increase of 60% Doubles 2011 Earnings
OAO Alrosa, Russia’s state-controlled 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. Sales expanded 21 percent to 138 billion rubles.
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 rose 87 percent to 65.2 billion rubles, while Ebitda margin reached 47 percent.
Rough diamond output grew 1 percent to 34.6 million carats. De Beers Group, Alrosa’s largest rival, produced 31.3 million carats in the period, it said in a Feb. 10 statement.
Alrosa’s debt declined by 6 percent to 95.5 billion rubles, while its debt to Ebitda ratio dropped to 1.5 from 2.9.
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