World’s second largest aluminum company United Company Rusal (HKG: 0486) reported its Q1 net profit tumbled around 44%, due to the abiding impacts of U.S. sanctions and lower aluminum prices.
Recurring net profit plummeted to $300 million from through March 31, as opposed to the $531 million in the year-ago period, Rusal said in a statement.
Rusal said it had seen weaker prices in its aluminum sales during Q1, with revenue falling around 21% settling at $2.17 billion.
The U.S. had laid down sanctions on Rusal, the Russian aluminum giant in April 2018, but lifted them later in January 2019 after managerial changes occurred in the company.
“In the coming months Rusal will focus on restoring its market position, including the share of value added products, which will be vital due to ongoing price uncertainty in the global aluminum market and continued U.S.-China tensions,” said CEO Evgenii Nikitin.