Higher Prices Lift Alrosa Revenue

RAPAPORT... Alrosa's sales and profit grew in the second quarter asrough-diamond prices rose after the miner was able to sell higher-value goodsthan last year. Revenue grew 2% year on year to $1.08 billion (RUB 72.2billion) for the three months ending June 30. Profit increased 1% to $378.6million (RUB 25.4 billion), the company reported last week. "In the first six months of 2018, higher diamond prices andstringent cost control along with [a] softer ruble drove our EBITDA margin upto 53%," said CEO Sergey Ivanov. Lower sales volume was partially offset by animprovement in the sales mix, Alrosa explained. Sales of rough diamonds fell 11% to 9 million carats, with gem-quality stones dropping 21% during the April-to-Juneperiod, the miner said. The average price of rough diamonds jumped 19% to $164 per carat,according to Rapaport calculations. The drop in sales was the result of lower production, aftera fatal flood led to the closure of the Mir underground mine in August of lastyear. Revenue for the first fiscal half increased 8% to $2.51billion (RUB 168.2 billion), while profit for the period soared 19% to $868.9million (RUB 58.3 billion).