REG - EN+ Group Intnl PJSC - Final Results

En+ MKPAOAnnouncement

21/03/2024 07:00

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RNS Number : 6666H  EN+ Group Intnl PJSC  21 March 2024

Link to reporting statements
(https://enplusgroup.com/en/investors/results-and-disclosure/ifrs/)

 

EN+ FY 2023 FINANCIAL AND OPERATIONAL RESULTS

 

21 March 2024 - EN+ GROUP IPJSC (the "Company", "En+" or the "Group")
announces its financial and operational results for the year ended December
31, 2023 (FY 2023).

·   The significant drop in aluminium prices, the rapid rise of the dollar
exchange rate and ongoing external pressure due to general geopolitical
tensions had a significant impact on the Group's results for 2023. En+ is
forced to overcome the consequences of logistics challenges and export
restrictions, while maintaining a focus on securing its independence in raw
materials supplies and developing new markets. The Group continues
implementing its investment programme based on the fundamental principles of
sustainable development and aimed at ensuring En+ long-term continuous
operation in the regions of its responsibility.

·   In 2023, sales of primary aluminium and alloys increased by 6.6% to
4,153 kt (3,896 kt in 2022), driven by release in 2023 of excess inventory
accumulated as at the end of 2022. This was offset by a 16.8% y-o-y decrease
in the price of aluminium on the London Metal Exchange (LME) over the
corresponding period, reaching an average of USD 2,252 per tonne in 2023, and
by an 18.0% decrease in the weighted-average realised aluminium price to USD
2,439 per tonne.

·   The Group's hydro power output remained almost flat y-o-y and amounted
to 68.8 TWh in 2023. At the same time, the Group's total electricity output
increased by 1.5% y-o-y to 85.2 TWh, Increase in electricity sales volumes
and increase in electricity prices were offset by a significant increase in
the US dollar exchange rate that continued throughout the year.

·   As a result, the Group's revenue for 2023 decreased by 11.5% compared
to 2022 and amounted to USD 14,648 million. At the same time, the Metals
segment's revenue decreased by 12.6% y-o-y to USD 12,213 primarily due to
decrease in LME aluminium price and the Power segment's revenue decreased by
7.7% y-o-y to USD 3,587 million driven by depreciation of rouble against the
US dollar during the year.

·   The Group's adjusted EBITDA(( 1  (#_ftn1) )) decreased by 30.8% to USD
2,157 million y-o-y on the back of Metals segment's results, whose adjusted
EBITDA in the reporting period decreased to USD 786 million y-o-y compared to
USD 2,028 million for 2022. At the same time, the Power segment's EBITDA in
2023 increased by 3.0% and amounted to USD 1,292 million compared to USD 1,254
million in 2022.

·   The Group's net profit in 2023 decreased by 61.2% to USD 716 million
compared to USD 1,846 million for 2022.

·   The Group's net debt(( 2  (#_ftn2) )) decreased by 13.9% as of December
31, 2023 and amounted to USD 8,717 million, compared to USD 10,123 million
as of December 31, 2022 mainly due to partial repayment of debt by the Group.

 

Consolidated financial indicators

 USD million (except %)                                   FY 2023           FY 2022           chg, %
 Revenue                                                  14,648            16,549            (11.5%)
  Primary aluminium and alloys sales 3  (#_ftn3)          9,933             11,384            (12.7%)
   Alumina sales                                          340               550               (38.2%)
   Electricity sales                                      1,646             1,844             (10.7%)
   Heat sales                                             476               525               (9.3%)
   Other                                                  2,253             2,246             0.3%
 Adjusted EBITDA                                          2,157             3,119             (30.8%)
 Adjusted EBITDA margin                                   14.7%             18.8%             (4.1pp)
 Net profit                                               716               1,846             (61.2%)
 Net profit margin                                        4.9%              11.2%             (6.3pp)
 Aluminium price per tonne quoted on the LME 4  (#_ftn4)  2,252             2,707             (16.8%)
 Average USD/RUB rate for the reporting period            85.25             68.55             24.4%
                                                          31 December 2023  31 December 2022  chg, %
 Net debt                                                 8,717             10,123            (13.9%)
 USD/RUB rate as at the reporting date                    89.69             70,34             27.5%
 Working capital                                          3,417             4,474             (23.6%)

 

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."

Revenue

In 2023, revenue decreased by 11.5% y-o-y to USD 14,648 million primarily due
to a 18.0% decrease in the weighted-average realised aluminium price per tonne
(to an average of USD 2,439 per tonne in 2023 from USD 2,976 per tonne in
2022) driven by a significant decrease in the LME aluminium price (to an
average of USD 2,252 per tonne in 2023 from USD 2,707 per tonne in 2022),
which was partially offset by a 6.6% y-o-y increase in primary aluminium and
alloys sales volume.

EBITDA

The Group's Adjusted EBITDA decreased by 30.8% y-o-y to USD 2,157 million in
2023 primarily influenced by the US dollar exchange rate and LME aluminium
prices. The Group's Adjusted EBITDA margin amounted to 14.7% (down by 4.1
percentage points).

Total cost of sales in 2023 decreased to USD 11,366 million, or by 5.7% y-o-y,
as compared to USD 12,056 million for 2022, predominantly driven by the
depreciation of the rouble against the US dollar.

Net profit

In 2023, net profit decreased by 61.2% to USD 716 million (USD 1,846 million
in 2022). The dynamics was influenced by the same factors as the decrease in
EBITDA, together with a decrease in the share in Norilsk Nickel's profit.

Capital expenditure

The Group's capital expenditure amounted to USD 1,448 million in 2023 (down
15.4% y-o-y).

In 2023, the Metals segment's capital expenditure amounted to USD 1,056
million compared to USD 1,239 million in 2022, down 14.8% y-o-y and was
primarily aimed at maintaining existing production facilities. Capital
expenditure of the Power segment amounted to USD 394 million in 2023
compared to USD 474 million in 2022 (down 16.9% y-o-y) due to depreciation of
the rouble against dollar.

Debt position

The Group's net debt decreased by 13.9% as at December 31, 2023 and amounted
to USD 8,717 million, as compared to USD 10,123 million as at December 31,
2022 mainly due to partial repayment of debt by the Group.

The net debt of the Metals segment as at December 31, 2023 decreased by 7.7%
y-o-y and totalled USD 5,779 million. The net debt of the Power segment as at
December 31, 2023 decreased by 23.9% compared to the level as at December 31,
2022 and amounted to USD 2,938 million.

Power segment FY 2023 performance

Power segment financial results

 USD million (except %)                         2023              2022              chg, %
 Revenue                                        3,587             3,885             (7.7%)
    Sales of electricity                        1,719             1,861             (7.6%)
    Sales of capacity                           567               598               (5.2%)
    Sales of heat                               428               471               (9.1%)
    Other                                       873               955               (8.6%)
 Adjusted EBITDA                                1,292             1,254             3.0%
 Adjusted EBITDA margin                         36.0%             32.3%             3.7pp
 Net profit                                     355               384               (7.6%)
 Net profit margin                              9.9%              9.9%              -
 Average USD/RUB rate for the reporting period  85.25             68.55             24.4%
                                                31 December 2023  31 December 2022  chg, %
 Net debt                                       2,938             3,862             (23.9%)
 USD/RUB rate as at the reporting date          89.69             70.34             27.5%
 Working capital                                (138)             (169)             -

In 2023, the Power segment's revenue decreased by 7.7% and amounted to
USD 3,587 million compared to USD 3,885 million in 2022. The dynamics of the
revenue in dollar terms was mostly driven by significant depreciation of
rouble against the US dollar during the year (the average USD/RUB exchange
rate for the reporting period increased by 24.4%), while the Power segment's
revenue in rouble equivalent increased driven by an increase in weighted
average electricity prices y-o-y and electricity sales volumes.

Revenue from electricity sales decreased by 7.6% y-o-y to USD 1,719 million
which was also influenced by the depreciation of rouble against the US dollar.
In 2023, the average electricity spot price on the day-ahead market in the
second price zone gained 7.4% y-o-y to 1,248 RUB/MWh, compared to 1,162
RUB/MWh in the like period of the last year.

Adjusted EBITDA of the Power segment increased by 3.0% to USD 1,292 million
in 2023 compared to USD 1,254 million in 2022. Adjusted EBITDA margin
increased by 3.7 percentage points to 36.0%. The change was largely driven by
the increase in electricity and capacity prices as well as increase in
electricity sales volumes.

In 2023, the Power segment's net profit decreased by 7.6% to USD 355 million
as compared to USD 384 million in 2022. The dynamics was largely impacted by
the change in the rouble exchange rate against the US dollar, which was
partially offset by a decrease in interest expenses against the backdrop of
changes in the Central Bank's key rate.

 

Power segment operating results

                                                                                    2023   2022   chg,%
 Production volumes 5  (#_ftn5)
 Total electricity production                                          TWh          85.2   83.9   1.5%
   HPPs, incl.                                                         TWh          68.8   69.0   (0.3%)
     Angara cascade 6  (#_ftn6)                                        TWh          53.1   54.2   (2.0%)
     Yenisei cascade 7  (#_ftn7)                                       TWh          15.8   14.8   6.8%
   CHPs                                                                TWh          16.4   14.9   10.1%
   Abakan SPP                                                          GWh          6.0    5.9    1.7%
 Heat                                                                  mn Gcal      27.4   27.6   (0.7%)

 Market prices

 Average electricity spot prices(( 8  (#_ftn8) )):
    1(st) price zone                                                   RUB/MWh      1,591  1,444  10.2%
    2(nd) price zone                                                   RUB/MWh      1,248  1,162  7.4%
          Irkutsk Region                                               RUB/MWh      1,159  987    17.4%

                                                                       RUB/MWh
          Krasnoyarsk Region                                                        1,201  1,157  3.8%

En+'s power plants(5) generated 85.2 TWh of electricity in 2023 (up 1.5%
y-o-y). The Group's hydro power output totalled 68.8 TWh in 2023 (down 0.3%
y-o-y).

The Group's Angara cascade HPPs (Irkutsk, Bratsk and Ust-Ilimsk HPPs)
decreased power generation by 2.0% y-o-y to 53.1 TWh in 2023. The decrease
compared to the same period last year was driven by high water reserves in
Lake Baikal and the Bratsk reservoir in the beginning of 2022 and on average
in 2022. Water levels in Lake Baikal reached 457.15 metres in 2023 (which is
38 centimetres higher than long-term average) compared to 456.86 metres in
2022. Water levels in the Bratsk reservoir reached 402.01 metres in 2023
(which is 3.2 metres higher than long-term average) compared to 401.28 metres
in 2022.

In 2023, the Group's Krasnoyarsk HPP's total power generation increased by
6.8% y-o-y to 15.8 TWh. The increase was the result of a more intensive
state-regulated drawdown in the Krasnoyarsk reservoir compared to 2022 due to
increase of water reserves. The maximum mark of the headwater level of the
Krasnoyarsk reservoir was 236.05 metres, which is 2.03 metres higher than
level of 2022 and 3.63 metres lower than long-term maximum.

In 2023, the Abakan Solar Power Plant generated 6.0 GWh (up 1.7% y-o-y) due to
higher number of sunny days during the reporting period.

Power generation at the Group's CHPs increased by 10.1% y-o-y and totalled
16.4 TWh in 2023. The increase in CHP power output was driven by growth of
electricity consumption in the Irkutsk energy system by 4.0% y-o-y (+295 MW)
in 2023 compared to the same period last year and decrease of generation
volumes by the Angara cascade HPPs in 1H 2023.

Heat generation at the Group's CHPs in 2023 amounted to 27.4 mn Gcal, a 0.7%
decrease y- o-y reflecting weather conditions - the average temperature
during 2023 was 0.2°С higher than during 2022.

 

"New Energy" HPP modernisation programme

Upgraded equipment at the Group's Bratsk, Ust-Ilimsk, Irkutsk and Krasnoyarsk
HPPs supported an increase in hydropower production of 2,170.2 GWh in 2023,
helping to prevent greenhouse gas emissions by approximately 2,515 thousand
tonnes of CO(2)e, due to the partial replacement of prior thermal power
generation volumes.

Russian energy market update 9  (#_ftn9)

·    In 2023, according to the System Operator of the United Power System
(UES), power production in the UES of Russia increased by 1.1% y-o-y and
amounted to 1,134.0 TWh. Consumption increased by 1.4% y-o-y to 1,121.6 TWh.

·    Electricity consumption in the integrated energy system in the first
price zone(( 10  (#_ftn10) )) in 2023 amounted to 845.8 TWh (up 1.0% y-o-y).
Electricity consumption in the Siberian integrated energy system amounted to
229.9 TWh in 2023 (up 2.3% y-o-y).

·    In 2023, the average electricity spot price on the day-ahead market
in the second price zone increased by 7.4% y-o-y to 1,248 RUB/MWh. The
dynamics was driven by lower HPP generation volumes in the period from January
to May along with electricity consumption growth and increase in the CHP price
bids levels and change in their structure.

·    The average spot prices in the Irkutsk region and the Krasnoyarsk
region stood at 1,159 and 1,201 RUB/MWh respectively in 2023 (up 17.4% and
3.8%). Higher price growth rates in the Irkutsk region against the Krasnoyarsk
region largely reflected by the decrease of generation volumes by the Angara
cascade HPPs in the period from January to May, electricity consumption growth
in Irkutsk region and increase in the CHP price bids levels and ongoing
transmission constraints on the transit to Irkutsk region.

Projected water inflows into reservoirs

The Hydrometeorological Centre of Russia forecasts water inflows into the main
reservoirs of En+ Group's generating assets in 1Q 2024 as follows:

·   Useful water inflows into Lake Baikal are expected to be 500-700 cubic
metres per second or 135-189% of normal levels. In 4Q 2023, the water inflow
was 850 cubic metres per second or 305% of normal levels, compared to 230
cubic metres per second (82% of normal levels) in 4Q 2022 (up 270% y-o-y). In
2023, the water inflow was 2,350 cubic metres per second, or 123% of normal
levels, compared to 1,800 cubic metres per second (94% of normal levels) in
2022 (up 31% y-o-y).

·   Lateral inflows into the Bratsk Reservoir are expected to be 205-235
cubic metres per second or 115-131% of normal levels. In 4Q 2023, the water
inflow to the reservoir was 660 cubic metres per second or 134% of normal
levels, compared to 490 cubic metres per second or 99% of normal levels in 4Q
2022 (up 35% y-o-y). In 2023, water inflows were measured at 1,203 cubic
metres per second or 116% of normal level, compared to 861 cubic metres per
second or 83% of normal levels in 2022 (up 40% y-o-y).

·   Lateral inflows into the Krasnoyarsk Reservoir are expected to be
230-290 cubic metres per second or 89-113% of normal levels. In 4Q 2023, the
water inflow to the reservoir was 610 cubic metres per second or 97% of normal
levels, compared to 782 cubic metres per second or 124% of normal levels in 4Q
2022 (down 22% y-o-y). In 2023, the water inflow was 1,342 cubic metres per
second, or 99% of normal levels, compared to 1,119 cubic metres per second, or
83% of normal levels, in 2022 (up 20% y-o-y).

 

Metals segment FY 2023 performance

Metals segment financial results

 USD million (except %)                           2023              2022              chg, %
 Revenue                                          12 213            13 974            (12,6%)
    Sales of primary aluminium and alloys         10 129            11 593            (12,6%)
    Sales of alumina                              340               550               (38,2%)
    Sales of foil and other aluminium products    550               581               (5,3%)
    Other                                         1 194             1 250             (4,5%)
 Adjusted EBITDA                                  786               2 028             (61,2%)
 Adjusted EBITDA margin                           6,4%              14,5%             (8,1pp)
 Net profit                                       282               1 793             (84,3%)
 Net profit margin                                2,3%              12,8%             (10,5pp)
                                                  31 December 2023  31 December 2022  chg, %
 Net debt                                         5 779             6 261             (7,7%)
 Working capital                                  3 665             4 833             (24,2%)

The Metals segment's revenue decreased 12.6% to USD 12,213 million in 2023
from USD 13,974 million in 2022.

Revenue from sales of primary aluminium and alloys in 2023 decreased by
USD 1,464 million, or by 12.6%, to USD 10,129 million, as compared to USD
11,593 million for 2022, primarily due to a 18.0% decrease in the
weighted-average realised aluminium price per tonne (to an average of USD
2,439 per tonne in 2023 from USD 2,976 per tonne in 2022) driven by an
decrease in the LME aluminium price (to an average of USD 2,252 per tonne in
2023 from USD 2,707 per tonne in 2022), which was partially offset by a 6.6%
increase in primary aluminium and alloys sales volume.

Revenue from sales of alumina in 2023 decreased by 38.2% to USD 340 million
from USD 550 million for 2022 primarily due to a decrease in sales volumes
by 35.1% and a decrease in the average sales price by 4.7%.

Revenue from sales of foil and other aluminium product decreased by USD 31
million or by 5.3% to USD 550 million for 2023, as compared to USD 581 million
in 2022, due to a decrease in revenue from sales of foil by 11.9% between the
compared periods.

Revenue from other sales, including sales of other products, bauxite and
electricity, decreased by 4.5% to USD 1,194 million for 2023 as compared to
USD 1,250 million for the previous year, due to a decrease in sales of other
materials (such as anode blocks by 12.1%, aluminium powder by 15.3%, silicon
by 28.0%), which was partially offset by an increase in revenue from the sale
of bauxite, and also due to a 27.0% decrease in revenue from the sale of
services (mainly a 36.8% decrease in revenue from the sale of energy
services).

Total cost of sales decreased by 3.0%, to USD 10,445 million for 2023, as
compared to USD 10,770 million for 2022. The key factors behind the decrease
in cost of sales were decrease in raw materials purchase price (except than
alumina and bauxite) and other costs by 19.8% y-o-y due to a decrease in raw
materials purchase price, as well as energy costs decrease by 13.9% y-o-y, due
to a decrease in the average electricity tariff between the comparable periods
that was caused by the weakening of rouble against the US dollar during the
reporting period. At the same time, the cost of alumina increased by USD 182
million, or by 9.9%, to USD 2,029 million in 2023 as compared to USD 1,847
million in 2022 primarily due to the increase in alumina purchase volume by
11.9% between the periods which was partially offset by the decrease in
alumina purchase price.

The finished goods mainly consist of primary aluminium and alloys
(approximately 95% of the total volume).

Adjusted EBITDA decreased to USD 786 million in 2023, as compared to
USD 2,028 million for 2022. The factors that contributed to the decrease in
Adjusted EBITDA and Adjusted EBITDA margin were the same that influenced the
operating results of the Metals segment. The Metals segment recorded profit of
USD 282 million in 2023, as compared to USD 1,793 million in 2022.

Metals segment operating results

                                                       2023    2022    chg, %

 Production volumes
 Aluminium                                      kt     3,848   3,835   0.3%
 Alumina                                        kt     5,133   5,953   (13.8%)
 Bauxite                                        kt     13,376  12,319  8.6%

 Sales volumes
 Aluminium                                      kt     4,153   3,896   6.6%

 Average prices
 Aluminium price per tonne quoted on the LME    USD/t  2,252   2,707   (16.8%)
 Average premiums over LME price 11  (#_ftn11)  USD/t  186     309     (39.8%)
 Average aluminium sales price                  USD/t  2,439   2,976   (18.0%)

Aluminium

In 2023, aluminium production remained almost unchanged y-o-y and amounted to
3,848 kt (up 0.3% y-o-y).

In 2023, aluminium sales increased by 6.6% y-o-y to 4,153 kt. During this
period sales of value-added products (VAP 12  (#_ftn12) ) decreased by 9.1% to
1,547 kt. The share of VAP sales in total sales was 38% (44% in 2022).

Alumina

Alumina output in 2023 decreased by 13.8% y-o-y to 5,133 kt. The decrease in
production volume was due to alumina production curtailment at the Nikolaev
Alumina Refinery caused by the introduction of martial law in the territory of
Ukraine and the sanctions imposed by the Australian government resulted in
failure to supply alumina from Queensland Alumina Ltd to the Group's
operations.

Bauxites and nepheline ore

Bauxite output in 2023 increased by 8.6% y-o-y to 13,376 kt. Nepheline output
in 2023 increased by 3.6% y-o-y to 4,519 kt.

Aluminium market overview 13  (#_ftn13)

·   In 2023, global economic uncertainty, high inflation and the constant
threat of recession continued putting pressure on the demand for aluminium.
Geopolitical tensions were affecting the global economy, disrupting the supply
chains and the end markets.

·   In 2023, the average LME aluminium price dropped by USD 455 to USD
2,252 per tonne, its lowest point was USD 2,069 per tonne in August 2023,
after reaching USD 2,636 per tonne in mid - Jan 2023.

·   Aluminium consumption increased despite all the above headwinds in 2023
to 70.2 million tonnes, up 1.7% from the previous year. In China, consumption
increased to 42.8 million tonnes, which is 4.9% higher than last year's
figure. China's decarbonisation efforts have increased demand for aluminium,
which is a key material for renewable energy-related manufacturing, ranging
from electric vehicles to solar panels. Aluminium consumption in the rest of
the world (the world excluding China, the "RoW") in 2023 contracted 2.8% y-o-y
and amounted to 27.4 million tonnes, showing the figures, previously seen in
2015 and 2016. The demand was supported mainly by sectors with a particular
focus on green transformation, namely the automotive and electrical
industries. Only these two areas contributed to consumption growth in 2023.

·   The worldwide supply of primary aluminium was up by 3.5% y-o-y in 2023,
reaching 70.5 million tonnes. RoW production went up by 0.9% to 29.0 million
tonnes due to production restart and capacity expansions in South America and
India. Nonetheless, around 1.1 million tonnes of aluminium production in
Europe was frozen due to high power cost in previous years.

·   Aluminium production in China increased by 3.4% y-o-y in 2023 to 41.5
million tonnes and is expected to grow further in 2024 due to the expected
growth in new capacity. In China, the industry recorded around 1.5 million
tonnes of net capacity increase by end of 2023, as a result of the creation of
3.9 million tonnes of new capacity and additional restart of previously closed
production, and 2.4 million tonnes of capacity being closed due to temporal
supply cuts in certain provinces. By the end of 2023, China had 45.3 million
tonnes of installed aluminium capacity.

·   China shipped out a lower volume of unwrought aluminium and alloys to
the RoW in 2023 as compared to the previous year due to weak demand in the
RoW. China's exports of unwrought aluminium, alloys and semis dropped by 14.0%
y-o-y to 5.7 million tonnes in 2023. At the same time, China's imports of
unwrought aluminium and alloys rose significantly during 2023 - by 58.8% y-o-y
to 2.7 million tonnes. China will increase its import of primary metal in the
upcoming years as its production is reaching its capacity limit and to satisfy
the healthy demand in aluminium.

·   During 2023, aluminium inventories in the LME after rising in high
volatility trading in the five months ended 31 May 2023 trended mostly
downward until mid-December; and surged by 120 thousand tonnes to 566 thousand
tonnes by the end of the year, in particular, the Russian metal supply
accounted for 90% of the total LME inventories as at the end of 2023. Metal
held outside of LME warehouses (off-warrant reported stocks) wavered during
the year and rose by 142 thousand tonnes to 439 thousand tonnes at the end of
November 2023.

·   Regional aluminium premiums were mostly dropping during the 11 months
ended 30 November 2023 due to the downward price pressure from increased
supply and weakening global spot demand. In December 2023, premiums stabilised
approximately at 18.80 cent per pound for U.S. Midwest aluminium premium, and
began to rise in Europe amid wide contango, sanctions against Russian
aluminium and risks of supply chain disruption in the Middle East. By the end
of 2023, European P1020 Duty Unpaid premium at warehouse Rotterdam stood at
USD145 per tonne.

·   Overall, the global aluminium market was roughly balanced in 2023.

 

 

For further information, please contact:

 

 For media:                      For investors:

 Tel: +7 495 642 79 37           Tel: +7 (495) 642 7937

 Email: press-center@enplus.ru   Email: ir@enplus.ru

 

About EN+ GROUP IPJSC

 

En+ is a leading international vertically integrated aluminium and hydropower
producer. The Company combines power plants with a total installed capacity of
19.5 GW (including 15.2 GW of hydro power assets), and 4.2 Mt of annual
aluminium production capacity (through a controlling stake in UC RUSAL plc,
the world's largest aluminium producer outside of China in 2023) which is the
major consumer of En+'s hydroelectricity.

 

***

The information presented in this announcement only reflects the position of
the Company during the review period from 1 January to 31 December 2023,
unless otherwise specified.

This announcement may include statements that are, or may be deemed to be,
"forward-looking statements". These forward-looking statements may be
identified by the use of forward-looking terminology, including the terms
"believes", "estimates", "plans", "projects", "anticipates", "expects",
"intends", "may", "will" or "should" or, in each case, their negative or other
variations or comparable terminology, or by discussions of strategy, plans,
objectives, goals, future events or intentions. Forward-looking statements may
and often do differ materially from actual results. Any forward-looking
statements reflect the Company's current view with respect to future events
and are subject to risks relating to future events and other risks,
uncertainties and assumptions relating to the Group's business, results of
operations, financial position, liquidity, prospects, growth or strategies.
Forward-looking statements speak only as of the date they are made.

 

 1  (#_ftnref1) Adjusted EBITDA for any period represents the results from
operating activities adjusted for amortisation and depreciation, impairment
charges and loss on disposal of property, plant and equipment for the relevant
period.

 2  (#_ftnref2) Net debt is the sum of loans and borrowings and bonds
outstanding less total cash and cash equivalents.

 3  (#_ftnref3) Consolidated data.

 4  (#_ftnref4) Aluminium price per tonne quoted on the London Metals Exchange
(LME) represents the average of the daily closing official LME prices for each
period.

 5  (#_ftnref5) Excluding Onda HPP (installed capacity 0.08 GW), located in
the European part of the Russian Federation, leased to RUSAL in October 2014.

 6  (#_ftnref6) Includes Irkutsk, Bratsk, and Ust-Ilimsk HPPs.

(( 7  (#_ftnref7) )) Krasnoyarsk HPP.

 8  (#_ftnref8) Market prices are calculated as an average of the prices
reported in the Monthly Day Ahead Prices Overview by NP Market Council
Association.

 9  (#_ftnref9) According to the "Day-Ahead Market monthly review" reports by
the Association "NP Market Council" https://www.np-sr.ru/

 10  (#_ftnref10) Comprises the Central, Central Volga, Urals, North-West and
South energy systems.

 11  (#_ftnref11) Average premiums over LME realised by the Company based on
management accounts.

 12  (#_ftnref12) VAP includes alloyed ingots, slabs, billets, wire rod,
wheels, high and special purity aluminium.

 13  (#_ftnref13) Unless otherwise stated, data for the "Aluminium market
overview" section is sourced from Bloomberg, CRU, CNIA, IAI and Antaike.

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