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ALROSA publishes accounting results for 2017

  • Published in Economy

ALROSA Diamond Company, the parent company of ALROSA Group, publishes RAS financial statements for 2017.

ALROSA Diamond Company is part of the ALROSA Group, which includes 58 legal entities, and therefore the Company's reporting under the Russian Accounting Standards (RAS) does not allow to make a judgement on the financial performance of the Group as a whole. The publication of RAS accounts is carried out as part of compliance with the requirements of the legislation of the Russian Federation and is not the basis for assessing the cost or efficiency of the ALROSA Group. The basis for calculating dividend payments to shareholders is the reporting under international financial reporting standards (IFRS), to be published on March 15, 2018.

The proceeds of ALROSA Diamond Company under RAS for 2017 amounted to 200.039 billion rubles. The decrease in revenue compared with 2016 is due to the strengthening of the ruble against the US dollar. In addition, the volume of revenue was affected by the change in the range and average prices of products sold - small-sized products sales increase in the first half of 2017 in line with the growth in demand in India.

The net profit of ALROSA Diamond Company under RAS for 2017 was 16.854 billion rubles. The main factor behind ALROSA's net profit loss under RAS by results of 2017 is the revaluation of investments in shares of the subsidiary company - ALROSA-Nyurba, 87.5% of which belongs to ALROSA Diamond Company, 10% belongs to the Republic of Sakha (Yakutia), 2.5% % of shares of ALROSA-Nyurba are traded on the Moscow Stock Exchange. In accordance with RAS, the Company must revalue the package in accordance with changes in quotations and reflect this in the reporting. "If in 2016 the share price of ALROSA-Nyurba showed a serious growth, then in 2017 a noticeable decrease, which led to a significant difference in the financial result. Nevertheless, a decrease in net profit as a result of revaluation of investments in shares is not a reflection of ALROSA's operational or financial performance.

This factor also does not have an impact on the Group's IFRS results,” Aleksey Filippovsky, Deputy General Director of ALROSA, commented.

Source: Yakutia24