Rusal chooses to withhold dividend payments for the year 2024.
Crummin' on Rusal's No-Dividend Decision and Potential Lawsuit Against Germany
Here's a lowdown on the recent moves by Rusal (RUAL). They've announced they won't be dishing out dividends for the past year, as per a statement posted on the Hong Kong Stock Exchange.
At a board meeting on May 15, 2025, Rusal's board of directors suggested to the Annual General Meeting of Shareholders (AGM) – scheduled for June 26, 2025 (with a record date of June 3, 2025, for determining the right to participate in the AGM) – not toivo the company's profit for 2024 and to pass on the chance to declare or pay dividends for the same year.
In March, Rusal's annual report showed that their net profit for 2024 skyrocketed by 2.8 times to $803 million (compared to $282 million previously), while their adjusted net profit reached a hefty $983 million compared to a measly $73 million the previous year. Yet, their operating cash flow took a hit, dropping by 72.6% to $483 million, and their working capital expanded by 25.1% to $4.59 billion.
In February, the European Union imposed a ban on the import of primary aluminum from Russia, offering a lifeline for European buyers who could still purchase metal from Russia within a quota of 80% of 2024 imports – or 275,000 tons. Rusal is Russia's top aluminum provider, and the company's financial reports hint that Brussels' restrictions wouldn't seriously hurt their business. One reason behind this is Rusal's shift towards Asian markets.
Gossip mills are buzzing that Rusal might be planning to take legal action against Germany – but there's no concrete confirmation yet. Companies may opt to sue governments for various reasons, such as disputes over regulations, trade practices, or asset seizures. Curious minds want to know the real deal, but without specifics from Rusal's official statements or recent news articles, it's hard to pin down the exact reasons for their decisions.
So there you have it – when it comes to Rusal, they're putting their cash flow to work, shifting gears towards Asia, and possibly gearing up for a legal battle against Germany. Stay tuned for more updates!
The decision not to declare dividends by Rusal, despite a significant increase in their net profit, might be a strategic move to reinforce their position in the industry, particularly in the face of the European Union's restrictions on Russian aluminum imports. Companies in the finance sector, such as Rusal, might opts to reserve their funds for future business opportunities or legal battles, like the potential lawsuit against Germany mentioned in speculations.
