Russia's Alrosa Sees Revenues of $4.5 billion in 2013

Alrosa expects to report a net profit of around $1 billion in 2013 as it did last year. The Gokhran, Russia's state minerals repository, is expected to acquire $100 million of diamonds from Alrosa

For 2013, ALROSA predicts that revenues will stay at the level of the previous year reaching $ 4.5 billion, while the company’s net profit will be $1 billion, Rough & Polished reported.

"In 2011, 2012 and 2013, we made a point of having no significant changes. We expect that our revenue will also be at the level of $ 4.5 billion and profit at the level of $ 1 billion," said Alrosa CEO Fyodor Andreev.

However, he noted that the situation will also depend on how efficiently the company deals with its non-core assets.

Following a meeting with Russian President Vladimir Putin, Andreev said he expected revenues of more than $4.5 billion from production of around 34 million carats for 2013 as it did in 2012. He added that net profits should again be around $1 billion in 2013.

The Gokhran is expected to buy $100 million of diamonds from Alrosa. "Our annual sales to the Gokhran are $100 million and that is what we expect in the current year."

He said the diamond market is showing stability and a shortage of supply for rough which is expected to work in Alrosa's favor.