Weak rouble and higher sales lift profit at Russia's Polyus Gold

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MOSCOW, March 10 (Reuters) - A weak rouble and improved sales helped Russia's largest gold producer Polyus Gold (Other OTC: PGILF - news) post a 47 percent year-on-year rise in adjusted net profit of $901 million last year.

Reduced costs due to the devaluation of the rouble and increased sales lifted earnings before interest, taxation, depreciation and amortisation (EBITDA) by 25 percent compared to the previous year to $1.3 billion, Polyus Gold said on Thursday.

"The weaker rouble positively affected the group's operating margins in 2015, due to the majority of its costs being rouble -denominated, and the U.S (Other OTC: UBGXF - news) . dollar being the reporting currency," Polyus said in a statement.

The results follow a net loss of $182 million in 2014 when the company's bottom line was hit by non-cash write downs. Net (LSE: 0LN0.L - news) profit in 2015 totalled $1.1 billion, Polyus said.

Revenue slipped 2 percent on an 8 percent fall in global gold prices, it said.

The company, controlled by billionaire Suleiman Kerimov and his partners, has also been supported by its gold price hedging programme which helped offset lower bullion prices.

Polyus said it agreed contracts in February to hedge 600 thousand ounces of gold sales over the next four years: 100 thousand ounces annually for the first three years and 300 thousand ounces in the fourth year.

Polyus, which delisted from the London Stock Exchange (Other OTC: LDNXF - news) in December, said it expects to produce between 1.76 and 1.80 million ounces of gold this year.

The company said earlier on Thursday its board of directors had recommended no dividend payments for 2015. (Reporting by Jack Stubbs; Editing by Maria Kiselyova and Alexander Smith)