Thursday, July 25 2019 16:56

ArmInfo. "RusAl ArmenAl"CJSC increased its assets for 2018 by 4% - to 48.4 billion drams or $ 100.1 million (against a growth of 2.6% in 2017). According to the  published financial report of the company, the increase in assets was  largely due to the growth of current assets by 12.3% - to 20.1  billion drams or $ 41.6 million (vs. 5.4% growth in 2017).

In particular, the dominant item of current assets - inventories  increased by 43.4% in 2018, reaching 19.5 billion drams or $ 40.4  million (against a growth of 7.9% in 2017). And on the accounts  receivable, on the contrary, there was a decline of 90.6% - to 402.4  million drams or $ 0.832 million (against a decline of 2.3% in 2017).

At the same time, the total liabilities of the company grew by 5.2%,  reaching 38.4 billion drams or $ 79.4 million following the results  of 2018 (against a decline of 1.1% in 2017). This was achieved due to  the growth of current liabilities by 6.5% - to 34.6 billion drams ($  71.5 million), against a growth of 1.5% in 2017. In the structure of  the latter, YOY growth was recorded in accounts payable - by 15.8% to  19.1 billion drams or $ 39.4 million (against a decline of 12.1% in  2017), and the volume of attracted loans and other borrowing, by  contrast, decreased by 2.8% to 15.5 billion drams or $ 32.1 million  (against a growth of 7.8% in 2017).

Total revenues of "RusAl ArmenAl" CJSC decreased in 2018 by 16% to  41.8 billion drams ($ 86.5 million), and total expenses - by 11% to  42.2 billion drams ($ 87.3 million). In the structure of revenues,  substantial growth was recorded in financial income, while revenue  fell by 17%. In the structure of expenses, growth was recorded in  sales expenses by 2 times, and in administrative expenses - by 5%,  and financial expenses were completely zeroed out, in parallel with  which the cost of sales decreased by 9.6%.  The latter, together with  a decline in revenue, reduced gross profit for 2018 by 70.1%. As a  result, the net profit from 1.5 billion drams in 2017 moved in 2018  to a loss of 184.3 million drams.

The equity capital of "Rusal ArmenAl" almost did not change - 9.993  billion drams. In its structure, the share capital has not changed -  36.7 billion drams, as well as additional capital - 28.7 billion  drams. And the accumulated loss, after a decline in 2017 by 2.6%, in  2018 increased only by 0.4% - to 55.4 billion drams. (The estimated  exchange rate of the dram to the dollar as of December 31, 2018 was  483.75 AMD / $ 1).

Audit of the YOY financial report of RusAl ArmenAl CJSC for 2018 was  conducted by KPMG Armenia, as in 2017. The auditor last year, in the  conclusion of the 2017 financial report, drew attention to the impact  of US sanctions on the company's owner (Oleg Deripaska - Ed. note,).    It should be noted that almost the entire 2018 year RUSAL worked in  the sanctions conditions. In particular, on April 6, 2018, the United  States expanded anti-Russian sanctions - then the country's Ministry  of Finance submitted a list of 24 businessmen and officials, as well  as 14 companies, including Oleg Deripaska and RUSAL. Later, the  United States postponed the imposition of sanctions on RUSAL after  requests from American companies, said  President and CEO of the  American Chamber of Commerce in Russia (AmCham) Alexis Rodzianko in  May 2018. The decision to postpone the sanctions against RUSAL was  probably made after Washington's talks with representatives of the  United States business, Alexis Rodzianko said. According to him,  restrictive measures against the Russian aluminum producer cause more  damage to the US economy than to head of the company, who was  included in the sanctions list of the White House Oleg Deripaska. The  decision to exclude the companies connected with Deripaska from the  sanctions list was taken by the US Treasury on December 19, 2018,  after the shares owned by the businessman were reduced.