United Company RUSAL, International Public Joint-Stock Company: history, ownership, mission, how it works & makes money

A Brief History of United Company RUSAL, International Public Joint-Stock Company

United Company RUSAL, one of the world's largest producers of aluminum, was established in 2000 through the merger of several Russian aluminum companies, including the Russian Aluminum (RusAl) company founded in 1995. By 2007, RUSAL had become the largest aluminum producer globally by volume, contributing approximately 7.4% of the world's total aluminum production.

In November 2010, RUSAL went public on the Hong Kong Stock Exchange (HKEX), raising $2.24 billion through its initial public offering (IPO). The company's stock was listed under the ticker symbol 486. Following the IPO, RUSAL's valuation reached approximately $33 billion, making it one of the largest companies to list in Hong Kong at that time.

Throughout the 2010s, RUSAL faced various challenges, including fluctuating aluminum prices and economic sanctions. In 2018, the company experienced significant financial strain when the U.S. Treasury imposed sanctions on RUSAL due to its ties to Russian oligarch Oleg Deripaska. Following these sanctions, RUSAL's share price fell sharply, losing roughly 50% of its market value in a matter of weeks, hitting a low of approximately $3.65 per share.

However, in early 2019, RUSAL's share price rebounded significantly after the U.S. Treasury lifted certain sanctions when Deripaska reduced his control over the company. By July 2019, RUSAL's shares traded at approximately $5.20 each, reflecting a recovery and resulting in a market capitalization of around $9.27 billion.

As of 2023, RUSAL continues to be a major player in the aluminum industry, producing around 3.7 million metric tons of aluminum per year. The company has also focused on sustainability, committing to reducing its carbon footprint and aiming for a 35% reduction in greenhouse gas emissions by 2030. In 2022, RUSAL reported revenues of approximately $12 billion with an EBITDA of $2.1 billion.

In terms of global market positioning, RUSAL holds around 6% of the world's primary aluminum production and is a leading supplier to various industries, including automotive, packaging, and construction. The company has also made strides in innovation, particularly in developing low-carbon aluminum solutions.

RUSAL's commitment to sustainable practices is underscored by its investment in renewable energy sources and initiatives aimed at reducing the environmental impact of its operations. The company reported that over 80% of its smelting capacity is powered by hydropower, significantly lowering its carbon emissions compared to fossil-fuel-based energy sources.

A Who Owns United Company RUSAL, International Public Joint-Stock Company

United Company RUSAL, a leading global aluminum producer, has a complex ownership structure. The major shareholder is Oleg Deripaska, who is a prominent Russian businessman. As of 2023, Deripaska holds a significant indirect stake through various entities, including En+ Group. En+ Group controls approximately 57.5% of RUSAL's shares.

Following Deripaska, the other notable shareholders include the Chinese state-owned enterprise, China National Chemical Corporation (ChemChina), which owns approximately 10% of the company, further solidifying RUSAL's connections with the Asian market.

The remaining shares are held by public and institutional investors. The free float, which is the portion of shares that are publicly traded, stands at around 32.5%.

In terms of market capitalization, RUSAL's valuation as of October 2023 is approximately $12 billion. The company trades on the Hong Kong Stock Exchange under the ticker symbol 0486.HK.

RUSAL's operational reach spans several countries, including Russia, Guyana, and Jamaica, with production facilities strategically located to optimize aluminum production processes. As of the first quarter of 2023, the company reported an aluminum production volume of approximately 1.3 million tons, reflecting a 3% increase compared to the previous year.

Financially, RUSAL reported revenue of $14 billion for the year ending December 2022, driven by rising aluminum prices and increased demand from the automotive and construction sectors. The gross profit margin stood at 21% during the same period, indicating a solid operational efficiency.

In light of recent geopolitical tensions and market fluctuations, RUSAL has also taken steps to diversify its supply chain, aiming to reduce reliance on specific markets and enhance overall resilience. The company's capital expenditure for 2023 is projected to be around $1.2 billion, aimed primarily at expanding its production capabilities and improving environmental performance.

Given the current state of the global aluminum market, RUSAL's strategic ownership and operational decisions will likely continue to influence its competitive positioning and market performance in the years to come.

United Company RUSAL, International Public Joint-Stock Company Mission Statement

United Company RUSAL, one of the world's largest aluminum producers, aims to lead the global aluminum industry by producing high-quality aluminum products while maintaining environmental sustainability and social responsibility. The company's mission encapsulates its commitment to innovation, operational excellence, and customer satisfaction.

RUSAL’s vision emphasizes becoming the producer of choice in the aluminum sector. Their mission includes key pillars such as:

• Creating value through operational efficiency and sustainable practices.
• Fostering a safe working environment and promoting the well-being of employees.
• Engaging with communities and stakeholders to ensure a positive social impact.
• Investing in technological advancements to enhance product quality and reduce environmental footprints.

As of Q3 2023, RUSAL reported significant achievements in line with its mission, including:

RUSAL has also set ambitious goals to align its operations with global environmental standards. Some of these goals include:

• Reducing greenhouse gas emissions by 35% by 2025.
• Increasing the use of renewable energy sources to power operations to 50% by 2030.
• Achieving 100% recycling of production waste by 2030.

The company's commitment to sustainability is further highlighted by its emphasis on responsible sourcing of raw materials and ethical labor practices. RUSAL has been recognized for its efforts, being included in the Dow Jones Sustainability Index, showcasing its alignment with global best practices in corporate social responsibility.

In summary, United Company RUSAL's mission statement reflects its dedication to efficient aluminum production, sustainable practices, and community engagement, underpinned by strong financial performance and operational goals.

How United Company RUSAL, International Public Joint-Stock Company Works

United Company RUSAL, one of the world's largest aluminum producers, plays a critical role in the global aluminum market. Founded in 2000 and headquartered in Moscow, Russia, RUSAL operates across the entire value chain of aluminum production, from raw materials to finished products.

As of 2023, RUSAL's key operational highlights include:

• Aluminum Production: RUSAL produced approximately 3.7 million metric tons of aluminum in 2022.
• Revenue: In the financial year 2022, RUSAL reported a revenue of around $14.5 billion.
• EBITDA: The EBITDA for the same year was approximately $3.7 billion.
• Net Income: RUSAL achieved a net income of $1.4 billion in 2022.
• Market Capitalization: As of October 2023, RUSAL's market capitalization stands at approximately $8.3 billion.

The company focuses on several key areas of operations:

• Alumina Refining: RUSAL owns and operates numerous bauxite mines and alumina refineries. This vertical integration helps in controlling costs and securing supplies. In 2022, the company produced around 9.1 million metric tons of alumina.
• Aluminum Smelting: The company operates one of the most efficient smelting operations globally, utilizing advanced technology and energy-efficient methods.
• Product Portfolio: RUSAL manufactures a wide range of aluminum products, including primary aluminum, alloys, and value-added products such as aluminum foil and rolled products.

RUSAL is continually investing in sustainable practices. In its 2022 sustainability report, the company highlighted:

• Carbon Footprint Reduction: RUSAL aims to reduce its carbon footprint by 35% by 2030.
• Renewable Energy Usage: Over 80% of RUSAL's aluminum production is powered by renewable energy sources, primarily hydropower.

In terms of geographical distribution:

RUSAL has made significant strides in technology to ensure operational efficiency and product quality. Investments in research and development accounted for around $150 million in 2022, aimed at innovations in aluminum properties and processing.

Market trends affecting RUSAL include fluctuations in aluminum prices, influenced by global demand and trade policies. The average aluminum price in 2022 was approximately $2,500 per metric ton, showing a slight increase from previous years due to supply chain disruptions and increasing demand in electric vehicle manufacturing.

In terms of strategic partnerships, RUSAL has formed alliances with various companies to enhance its market position, including agreements for sourcing bauxite and developing new technologies.

RUSAL remains an industry leader, adapting to shifts in demand while focusing on sustainability and efficiency. The company’s proactive approach in managing its operational footprint and leveraging technology positions it favorably in the competitive landscape of global aluminum production.

How United Company RUSAL, International Public Joint-Stock Company Makes Money

United Company RUSAL, one of the world's largest aluminum producers, generates revenue through a diversified set of operations primarily centered around the production and sale of aluminum products. In 2022, the company reported revenues of approximately USD 10.5 billion, a decline from USD 12.5 billion in 2021, largely due to fluctuating aluminum prices and demand challenges.

The company operates in various segments, including:

• Primary Aluminum
• Alumina
• Aluminum Products
• Other Products

RUSAL's primary revenue source is the production of aluminum. In 2022, the company produced around 3.8 million tonnes of aluminum. The average selling price of aluminum during that year was approximately USD 2,600 per tonne, though prices had touched as high as USD 3,200 per tonne earlier in the year due to increased demand in sectors such as automotive and construction.

In addition to aluminum sales, RUSAL also earns significant revenue from alumina, an essential raw material for aluminum production. In 2022, the company produced approximately 12.5 million tonnes of alumina, contributing to a segment revenue of around USD 1.8 billion.

RUSAL continues to expand its product offerings, including value-added products like aluminum sheets and extrusions. The segment for aluminum products contributed roughly USD 2 billion to the company's overall revenue in 2022. The demand for these products remains strong, particularly in industries focusing on sustainability and lightweight materials.

Furthermore, RUSAL is actively investing in technology aimed at reducing the carbon footprint of aluminum production. The company aims to achieve carbon neutrality by 2050, which may create new revenue streams through green aluminum products and partnerships with companies focused on sustainable practices.

Currency fluctuations also impact RUSAL’s revenue. As a company listed on the Hong Kong Stock Exchange, the exchange rate between the Russian Ruble and the US Dollar can significantly affect profitability due to the nature of international sales.

In summary, RUSAL's revenue generation model is multifaceted, relying primarily on aluminum and alumina production while also diversifying into value-added products and sustainable practices. The fluctuations in price and demand, along with the company's strategic investments, play crucial roles in its financial performance.