Alrosa posts profit jump on recovering diamond demand

State-controlled Russian diamond producer Alrosa (ALRS.MM) on Thursday said recovering sales helped it to more than triple third-quarter net profit to 25 billion roubles ($354 million).

The world’s largest producer of rough diamonds, which competes with Anglo American (AAL.L) unit De Beers, is gradually restoring output after last year’s 22% reduction to 30 million carats when global diamond sales were hit by the COVID-19 pandemic.

Demand for diamond jewellery grew in double-digit percentages in the third quarter, said finance chief Alexey Philippovskiy, adding that global diamond output would remain 20–25% below the pre-pandemic levels in the coming years.

Alrosa’s third-quarter sales rose by 83% year on year to 9.2 million carats of diamonds.

The company also said it raised its 2021 production estimate by 1 million carats to 32.5 million carats and kept its capital expenditure forecast unchanged at 21 billion roubles.

Courtesy: Reuters