Alrosa Q1-Q3 Revenues Jump, Profit Slumps

(IDEX Online) – Russian diamond mining giant Alrosa posted a 21-percent rise on the year in revenues for the first nine months of 2014 to $3.22 billion (RUB 146.9 billion).

However, the miner reported a 44-percent fall on the year-earlier period in net profit in to $281 million.

The company said the net loss mainly a result of increased foreign currency losses due to a revaluation of the US dollar-denominated part of the group's credit portfolio following the ruble depreciation in the third quarter of this year.

The ruble has fallen sharply against the dollar this year due to the effects of U.S. and European Union sanctions against Russia due to its actions in Ukraine and its increasing financial problems as a result of the falling price of oil on world markets.

Alrosa also reported that earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 28 percent on the year to $1.44 billion (RUB 65.8 billion).