Dear shareholders and investors,
In 2016, ALROSA consolidated its status as a world leader in rough diamond production. High operational efficiency, financial performance and profitability for shareholders became possible thanks to skillful actions of the management team in difficult macroeconomic conditions. As a result, by the end of the year, we had achieved target values of key performance indicators of ALROSA Group set by the shareholders.
Dear shareholders, partners and employees,
ALROSA finished the year of 2016 with outstanding financial results. Based on IFRS, ALROSA's revenue increased by 41.2% and reached RUB 317.1 bn. During the reporting period, the Company earned record-breaking consolidated net profit of RUB 133.5 bn. The continuous efforts to cut costs and increase operating efficiency made it possible for ALROSA to attain figures of EBITDA in the amount of RUB 176.4 bn and EBITDA profitability of 55.6%. In the past year, capital investments of ALROSA Group amounted to RUB 31.8 bn, the bulk of which was directed to exploration and extraction of rough diamonds in accordance with the strategy.
PJSC ALROSA (“the Company”, “ALROSA”) is a Russian partially state-owned diamond mining company. ALROSA is the industry leader that accounts for one third of the reserves and more than a quarter of the production of the global rough diamond market.
PJSC ALROSA has a long and successful history of development, the foundation of the first industrial diamond mining was laid 60 years ago in 1957.
PJSC ALROSA pursues a single-product strategy with a focus on rough diamond exploration and production as the most attractive and high-margin segment of the rough diamond industry. In 2016, PJSC ALROSA and its subsidiaries produced 37.4 million carats of rough diamonds, sales revenue increased by 41.2% compared to 2015 and amounted to RUB 317.1 billion. At the end of the year, the rough diamond segment accounted for more than 92% of consolidated revenue.
The core activities of PJSC ALROSA are concentrated in two regions of the Russian Federation, namely the Republic of Sakha (Yakutia) and the Arkhangelsk Region, as well as on the African continent.