Alrosa’s sales and profit grew in the second quarter as rough-diamond prices rose after the miner was able to sell higher-value goods than last year.
Revenue grew 2% year on year to $1.08 billion (RUB 72.2 billion) for the three months ending June 30. Profit increased 1% to $378.6 million (RUB 25.4 billion), the company reported last week.
“In the first six months of 2018, higher diamond prices and stringent cost control along with [a] softer ruble drove our EBITDA margin up to 53%,” said CEO Sergey Ivanov. Lower sales volume was partially offset by an improvement in the sales mix, Alrosa explained.
Sales of rough diamonds fell 11% to 9 million carats, with gem-quality stones dropping 21% during the April-to-June period, the miner said. The average price of rough diamonds jumped 19% to $164 per carat, according to Rapaport calculations.
The drop in sales was the result of lower production, after a fatal flood led to the closure of the Mir underground mine in August of last year.
Revenue for the first fiscal half increased 8% to $2.51 billion (RUB 168.2 billion), while profit for the period soared 19% to $868.9 million (RUB 58.3 billion).