Russia's United Company Rusal, which owns the Aughinish Alumina plant in Shannon, today reported it had returned to profit for the first time in five quarters and gave a bullish outlook for aluminium prices, driven by growing demand from carmakers and supply cuts outside China.

The aluminium giant emerged from the red thanks to higher aluminium prices, cost cuts and smelter closures and forecast further gains, as it sees a global supply deficit more than doubling in the second half of the year to 1.5 million tonnes.

"In the first half of 2014, we witnessed some important trends which signaled that the global aluminium industry has turned a corner," chief executive Oleg Deripaska said in a statement.

Rusal last week completed a crucial restructuring of $5.15 billion in debt and has no payments due until January 2016. The deal gives it flexibility to pre-pay debt when cash flows are strong and pay less when London Metal Exchange prices fall.

Rusal, which has a primary listing in Hong Kong and secondary listings in Paris and Moscow, said it expected EBITDA to top $600 million in the second half of this year at current aluminium prices.

Its shares slipped 0.5 per cent after the result, but the stock is up 72 per cent this year.

Reuters