) and Open Joint Stock Company (OJSC) RUSNANO signed a Memorandum
of Understanding (MOU) to produce technologically advanced oil
and gas aluminum drill pipe finished with a life-extending
antiwear coating. The life of the aluminum pipe is expected to be
extended by 30% to 40% in aggressive and corrosive drilling
environments with antiwear nano-coating compared to uncoated
Both Alcoa and RUSNANO propose to try out the potential
application of a nanotechnology-based coating for the aluminum
drill pipe to augment wear resistance in unfavorable corrosive
drilling environments with the help of Alcoa Technical
According to OJSC RUSNANO, complex oil and gas development
projects need drilling equipment that have increased capabilities
and the company stated that aluminum drill pipe with antiwear
nano-coating will help in directional and deep drilling in
aggressive, corrosive environments.
OJSC RUSNANO feels that by partnering with Alcoa it can create
products that are unique for customers in the oil and gas
industry. Alcoa, on the other hand, stated that with the
expertise of RUSNANO, it can cater to the aluminum industry in
As per the MOU, Alcoa will leverage its Samara facility to
produce aluminum drill pipe with hot fit tool joints for the
country's oil and gas market. The capital will be provided by
RUSNANO Capital, a subsidiary of OJSC RUSNANO.
OJSC RUSNANO was established in Mar 2011 through the
reorganization of the Russian Corporation of Nanotechnologies
State Corporation. OJSC RUSNANO implements the state
nanotechnology policy of the development of the nanotechnology
industry acting as the co-investor in nanotechnology projects
with substantial economic or social potential.
Alcoa, which is among the prominent players in the mining
industry along with
Aluminum Corporation of China Limited
Atlatsa Resources Corporation
BHP Billiton Limited
), is a world leader with respect to production and management of
primary aluminum, fabricated aluminum, and alumina as well as the
world's largest miner of bauxite and refiner of alumina.
Alcoa released its first quarter 2013 results in Apr 2013. The
company saw its profit surge roughly 59% in the quarter, buoyed
by strong aluminum demand. It posted a profit of $149 million or
13 cents per share in the quarter, exceeding the profit of $94
million or 9 cents recorded a year ago. The results were driven
by strong demand across the aerospace and auto markets.
Excluding one-time special items, Alcoa earned $121 million or
11 cents a share in the quarter, beating the Zacks Consensus
Estimate by a penny and exceeding $105 million or 10 cents per
share posted in the year-ago quarter.
Revenues declined roughly 3% to $5,833 million from $6,006
million in the year-ago quarter and were below the Zacks
Consensus Estimate of $5,857 million. Sales were hurt by lower
aluminum prices and reduced production in Alcoa's primary metals
business in Europe.
ALCOA INC (AA): Free Stock Analysis Report
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Alcoa currently retains a short-term Zacks Rank #4 (Sell).