PJSC ALROSA reported extremely good IFRS financial results for Q1 2018, which it announced yesterday.

In the reporting period, the ALROSA’s rough diamond sales grew by 43% q-o-q to 13.4 million carats despite a production decrease of 26% q-o-q.

“The growth was due to sales of around 6 million carats from company’s stocks,” ALROSA elaborated.

The Company’s revenue for Q1 2018 rose by 58% q-o-q to RUB 96 billion, “driven by an improved product mix and higher average selling prices” ALROSA   said.

As compared with the previous quarter, the Company’s EBITDA increased by 78%,  and reached RUB 48 billion in Q1 2018. This, ALROSA said in its presentation, was achieved due to “stronger sales, mix and price improvement, as well as tighter cost control”. Looking at it on a y-o-y basis, the Company’s EBITDA increased 37%; which ALROSA said “was driven by changes in rough diamond product mix and prices despite a decrease in diamond sales yoy”.

Net profit for Q1 2018 stood at  RUB 33.2 billion,  as compared to a net profit of RUB 23.7 billion in Q1 2017. Net profit  was  two times higher q-o-q. Free cash flow rose 3.5 times q-o-q, reaching RUB 41.1 billion.

ALROSA’s net debt for the quarter fell 4.6 times to RUB 18.6 billion  on the back of stronger free cash flow and proceeds from the sale of its gas assets.

“ALROSA's excellent financial performance in Q1 2018 is largely due to improved market conditions, which we were able to fully benefit from, and stringent cost control,”   commented Sergey Ivanov, CEO and Chairman of the Executive Committee at ALROSA.