EN+ GROUP IPJSC announced its financial results for the six-month and the three-month periods ended June 30. The group said it continues to make good progress in its ongoing recovery from the impact of sanctions, which were lifted in January. The power segment has delivered stable operational performance and a strong increase in net profitability in the first half of 2019, the company said. The metals segment has seen strong recovery in volumes set against the ongoing challenge of a more than 17% decline in aluminum prices on the LME 1 in the first half of 2019 year-on-year in the face of trade tension between the United States and China. The board of directors said it is confident that progress will continue to be made over the remainder of 2019. The board anticipates dividend payments will be resumed following publication of the company’s full-year 2019 financial results.
In the first half of 2019, the group’s revenue declined 5.4% to US$5.8 billion year over year. In the second quarter of 2019, revenue increased 12% year over year to US$3 billion as compared to US$2.7 billion in the second quarter of 2018. The key driver for second quarter 2019 growth was an increase in aluminum sales volumes.
On January 27, OFAC5 announced it lifted sanctions against the company. Now the group has been able to deliver sequential improvements in operating performance, the company said.
Construction continues at the group’s key development projects, BEMO and Taishet, including approval in June of the construction of the second phase of Taishet Anode Plant with approximately US$90 million of funding in 2019.
On July 1, the group commenced the modernization of the Irkutsk HPP as part of the group’s new energy program.
On July 5, the Group signed definitive agreements with Braidy Industries in line with previously announced terms, including a metal supply agreement for delivery of approximately 200 kt of aluminum annually over ten years once the rolling mill is constructed and launched into operation.