EN+ Group Reports Resilient Performance Amid Economic Uncertainty in 1H 2024
EN+ Group has released its financial and operational results for the first half of 2024, showing resilience despite global economic challenges. The company faced headwinds from geopolitical tensions, rising inflation, high interest rates, and restrictions on Russian aluminum supply, all of which negatively impacted its financial performance.
During the period, the Group managed to increase its hydro power output by 24.1% year-on-year to 37.1 TWh, contributing to a 17.0% rise in total electricity output, which reached 46.2 TWh. However, gains from higher electricity sales volumes were partially offset by lower electricity prices.
Aluminum production saw a modest increase of 2.3% year-on-year, totaling 1,957 kilotons, driven by the ramp-up at the Taishet Aluminium Smelter. Despite this, aluminum sales declined by 2.9% to 1,879 kilotons. Meanwhile, alumina production surged by 18.9% to 2,995 kilotons, bolstered by the acquisition of a 30% stake in China's Hebei Wenfeng New Materials.
The Group's revenue for the first half of 2024 fell by 3.6% year-on-year to $7.02 billion. The Power segment’s revenue declined by 6.6% to $1.87 billion, largely due to the significant depreciation of the Russian rouble against the U.S. dollar. The Metals segment also experienced a 4.2% drop in revenue, reaching $5.7 billion, impacted by lower aluminum sales, reduced volumes of value-added products, and a 20.5% decrease in the weighted average premium on the London Metal Exchange (LME) aluminum price.
Despite the revenue decline, the Group's total cash cost of products sold dropped by 13.7% to $4.94 billion, driven by lower raw material costs and a decrease in transportation tariffs. The Power segment's adjusted EBITDA dipped by 2.5% to $713 million, while the Metals segment’s adjusted EBITDA soared by 171.0% to $786 million. Overall, the Group's adjusted EBITDA saw a significant increase of 43.8% year-on-year, totaling $1.50 billion.
EN+ Group's net profit for the first half of 2024 rose by 44.6% to $957 million, up from $662 million in the same period last year. Capital expenditure also increased by 17.7% year-on-year, reaching $686 million.
As of June 30, 2024, the Group's net debt increased by 4.7% to $9.13 billion, compared to $8.72 billion at the end of December 2023, primarily due to a decrease in cash and cash equivalents.
