UPDATE 1-UC RUSAL 2009 swings to profit, sees strong 2010

* 2009 profit $821 mln vs analysts' forecast $574 mln

* H2 profit $1.698 billion vs analysts forecast $1.442 bln

* Sees aluminium prices remaining above $2,000 per tonne

(Adds CEO comment, details)

HONG KONG/MOSCOW, April 12 (Reuters) - Russia's UC RUSAL, the world's biggest aluminium producer, said on Monday it saw stronger aluminium demand as the global economy recovers, as it swung to a profit in 2009 boosted by cost reduction initiatives.

"Demand for aluminium is also expected to be supported by the major developed countries as the global economy revives,” the company said in a statement to the Hong Kong Stock Exchange in its first annual report since its January IPO.

It added it expects aluminium prices to remain above $2,000 per tonne throughout this year.

"The company will continue focusing on efficiency improvements by optimisation of raw materials supply, power consumption, logistics, reduction in overheads and roll-out of UC RUSAL's operational systems, as well as steady deleveraging through operating cash flows,” it said.

As the market improves, RUSAL (0486.HK: Quote, Profile, Research) (RUAL.PA: Quote, Profile, Research) said it would boost both alumina and aluminium production this year.

RUSAL, which raised $2.2 billion when it became the first non-Asian company to list in Hong Kong earlier this year, reported a net 2009 profit of $821 million, compared with a loss of $5.98 billion in 2008.

Analysts had predicted a profit of $574 million, which included non-cash gains such as the group's 25 percent stake in metals giant Norilsk Nickel (GMKN.MM: Quote, Profile, Research). Excluding those items, they had forecast a net loss of $949 million for 2009. [ID:nLDE63718I]

Net profit for the last six months of 2009 reached $1.689 billion versus a loss of $7.393 billion a year earlier and consensus forecast of a $1.442 billion profit, according to Reuters calculations using company data.

"(Last year was) one of the toughest on record for the global economy, commodity markets in general and, in particular, the aluminium industry,” CEO Oleg Deripaska said in a statement in the company's annual report.

"We fully intend to benefit from improving market conditions and our proximity to the fast growing markets in China and other parts of Asia,” he said.

RUSAL shares fell sharply on their opening day of trading and remain 10 percent below their original valuation.

RUSAL became the world's biggest aluminium producer through a string of acquisitions and expansion last decade, but the global economic crisis and subsequent downturn in aluminium prices plunged the group into a debt crisis.

It eventually restructured $16.8 billion of debt late last year, and launched IPOs in Hong Kong and Paris in January. Several other Russian firms have since announced plans to float in London, Moscow and Hong Kong.