Russian aluminium producer United Company Rusal International (Rusal) has reported a net profit of $282m for the year ended 31 December 2023, marking an 84.3% decline from $1.79bn in the prior year.

The performance was hit by a decrease in the average realised aluminium price, which fell 18% to $2,439 a tonne (t) in 2023 from $2,976/t in 2022.

The company generated total revenues of $12.21bn in 2023, down 12.6% compared with $13.97bn in the previous year.

Its adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) also saw a sharp decline, dropping 61.2% to $786m compared with $2.03bn in 2022. Adjusted EBITDA margin slid to 6.4% in 2023 from 14.5% in 2022.

However, Rusal’s sales of primary aluminium and alloys grew 6.6% to 4.15 million tonnes (mt), up from 3.90mt in 2022. This rise was attributed to the release of excess inventory that had accumulated by the end of 2022.

Rusal’s total capital expenditure was $1.06bn in the 12 months to December 2023, which was primarily directed towards maintaining existing production facilities, versus $1.24 in 2022.

In a press statement, Rusal said: “In 2023, global economic uncertainty continued putting pressure on the demand for aluminium. Meanwhile, geopolitical tensions, including the unprecedented regime of external restrictions and supply chain disruptions, as well as a significant drop in aluminium prices, had a negative impact on the company’s results.

“In this environment, the company continued to focus on securing its independence in raw materials supplies, restructuring its export sales channels, developing the domestic market, and implementing its investment programme based on the fundamental principles of sustainable development and social responsibility, and aimed at ensuring the company’s continuous operation and further development.”

Last year, Rusal signed a 1.91bn yuan ($261.6m) deal to buy a 30% stake in Chinese alumina producer Hebei Wenfeng New Materials.