LONDON: En+ Group IPJSC, a leading global producer of aluminium and power, has released its financial and operational results for the fiscal year 2023, revealing a challenging economic landscape marked by geopolitical tensions and market volatility.

Despite a significant drop in aluminium prices and a rapid rise in the dollar exchange rate, En+ managed to increase its sales of primary aluminium and alloys by 6.6% to 4,153 kt, up from 3,896 kt in 2022.

This increase was primarily attributed to the release of excess inventory accumulated at the end of the previous year. However, the gains were tempered by a 16.8% year-over-year decrease in the London Metal Exchange (LME) aluminium price, averaging USD 2,252 per tonne, and an 18.0% decrease in the weighted-average realised aluminium price to USD 2,439 per tonne.

The Group’s hydro power output remained stable at 68.8 TWh, while total electricity output saw a modest increase of 1.5% year-over-year to 85.2 TWh. The rise in electricity sales volumes and prices was offset by the significant appreciation of the US dollar throughout the year.

Financially, En+ Group’s revenue for 2023 fell by 11.5% to USD 14,648 million compared to the previous year. The Metals segment experienced a 12.6% decline in revenue to USD 12,213 million, mainly due to the lower LME aluminium price, while the Power segment’s revenue decreased by 7.7% to USD 3,587 million, affected by the depreciation of the rouble against the US dollar.

The Group’s adjusted EBITDA dropped by 30.8% to USD 2,157 million, with the Metals segment’s adjusted EBITDA falling to USD 786 million from USD 2,028 million in 2022. Conversely, the Power segment’s EBITDA increased by 3.0% to USD 1,292 million.

Net profit for the year plummeted by 61.2% to USD 716 million, down from USD 1,846 million in 2022. On a positive note, the Group’s net debt decreased by 13.9% to USD 8,717 million, mainly due to partial debt repayment.

Mikhail Khardikov, CEO of En+, noted: “Despite the overall decline in the Group’s financial indicators, driven by a combination of external economic factors, we maintain operational stability and continue to adapt successfully to changes. Against the backdrop of a challenging economic environment, persistent appreciation of the US dollar, and declining global aluminium prices, the company remains focused on reducing external debt, optimising internal processes, and modernising production facilities. We are effectively expanding our domestic market and seeking new partners, addressing equipment import substitution tasks, and restructuring supply logistics. I am confident that in the long term, these efforts will lay a solid foundation for growth.

En+ remains a cornerstone company and an important partner for the Siberian regions. Our tens of thousands of employees and their families, as well as residents of the regions under our responsibility, rely on us. Therefore, we uphold all commitments undertaken as an employer and continue to expand our social program initiatives. Today, we are committed to enhancing the quality of life and urban infrastructure development, supporting educational and cultural projects, promoting sports development, and contributing to overall improvements in the lives of people in the cities where our enterprises operate.

Furthermore, En+ maintains its commitment to sustainable development principles and continues to implement the “New Energy” hydroelectric power plant modernisation program, which not only reduces greenhouse gas emissions but also ensures the solidity of the Siberian power system.

Our strategic priorities for the future remain unchanged, and although uncertainty and volatility levels remain high, we have confidence in the effectiveness of our team and anticipate successfully overcoming the consequences of external challenges in the future.”

Dowlais Group reports 6.3% growth in revenue to £5.48 billion in 2023