En+ Group posts a 3.6% drop in H1 revenue in line with dipped sales value; but net profit heightens by 44.6%

En+ Group, the largest producer of low-carbon aluminium and the biggest independent renewable energy generator, has announced its financial results for the first half of FY2024 ended June 30. The Group described the period as an onlooker of geopolitical tensions, weak metal demand, high interest rates, and sanctions on Russian aluminium.

All these factors adversely affected the Group’s financial results, resulting in a 5 per cent Y-o-Y drop in primary aluminium and alloy sales from US$4,740 million to US$4,502 million. As a consequence, revenue decreased by 3.6 per cent from US$7,283 million to US$7,021 million; however, this was partly offset by alumina and electricity sales increase from US$181 million to US$191 million and US$898 million to US$915 million, respectively.

The rise in alumina and electricity sales could be attributed to increased demand for raw materials fuelled by the primary aluminium production hike. In H1 2024, En+ Group’s alumina production rose by 18.9 per cent Y-o-Y to nearly 3 million tonnes following the acquisition of a 30 per cent stake in China’s Hebei Wenfeng New Materials, and aluminium production at Taishet smelter rose 2.3 per cent Y-o-Y to 1.96 million tonnes. Meanwhile, primary aluminium sales decreased due to timid demand from downstream manufacturers.

Factors like a 20.5 per cent decrease in weighted average premium to the aluminium price on LME and a 7 per cent decline in value-added production also contributed to the H1 2024 revenue drop.

On the contrary, the Group’s Adjusted EBITDA increased by 43.8 per cent Y-o-Y from US$1,046 million to US$1,504 million, leading to a heightened net profit of about 44.6 per cent from US$662 million in H1 2023 to US$957 million in H1 2024.

The Group’s capital expenditure in H1 2024 amounted to US$686 million in H1 2024 versus US$583 million in H1 2023. The metal segment’s capital expenditure was higher by 23.7 per cent to US$516 million, invested in maintaining existing production facilities.