En+ Group summed up its financial results for 2023 and talked about plans for the future

Energy holding will continue to develop investment projects throughout Russia

Against the backdrop of a difficult economic situation and lower prices for metals on the world market last year, the consolidated net profit of the En+ group amounted to $716 million, which is 61.2% lower than the 2022 level. Revenue decreased by 11.5%. However, the company remains sustainable and does not plan to abandon the implementation of innovative and environmental projects. En+ General Director Mikhail Khardikov announced this at a press conference at the RIA Novosti multimedia center on March 21.

The past year was difficult for the energy holding, but it managed to cope with key challenges – to begin to develop the domestic market, successfully carry out import substitution of equipment and find new partners. The group’s net profit according to international financial reporting standards (IFRS) decreased by 61.2% last year, reaching $716 million. Adjusted EBITDA (the term comes from the abbreviation in English. earnings before interest, taxes, depreciation and amortization) is an indicator business profits, from which interest on loans, expenses for taxes and depreciation have not yet been deducted – editor’s note) of the holding decreased by 30.8% and amounted to $2.16 billion. During the press conference, Mikhail Khardikov emphasized that despite the difficult economic situation, the constant rise in the dollar exchange rate and the fall in world prices for aluminum, the company continues to work to reduce external debt and regularly optimizes internal processes, and also invests in the modernization of production. Thus, the company’s net debt in 2023 decreased by 13.9%, to $8.72 billion.

Last year, the holding’s revenue decreased by 11.5%, to $14.65 billion. However, according to Khardikov, the company feels confident in the market. In particular, we are able to successfully develop the domestic market, find new partners and rebuild supply logistics. In the future, such a business transformation will become a solid basis for long-term growth, especially since the energy company is not going to abandon its most exciting projects.

The CEO of En+ recalled that the company’s assets are located on 5 continents, and the holding itself is the largest supplier of low-carbon aluminum and producer of “green” electricity. The output of hydroelectric power plants in 2023 remained at the level of 2022, and generation at thermal power plants increased significantly. Sales of aluminum increased by 6.6% last year due to the sale of warehouse stocks. The production of this metal has also increased, Khardikov emphasized.

Energy consumption of the developed economies of the world is decreasing, while the BRICS states are increasing it. Within Russia, two macroregions can be distinguished where energy consumption is growing faster than the national average: Siberia and the Far East. In this regard, the company continues to develop its investment projects in this part of the country. Thus, the energy holding is interested in participating in the competition for the construction of new generation in the Far East. “As for the Far East, we are very interested in it, it is one of the key macro-regions, we see a significant increase in energy consumption, we will take part,” Mikhail Khardikov revealed the holding’s plans.

Another striking project of the group is “New Energy”. It includes the construction of a 1 GW wind farm in the Amur region, which could begin as early as 2025, as well as the construction of new energy generation facilities in Siberia. “We have created a design company, the key parameters are being worked out,” Khardikov emphasized at the press conference. — We are discussing technological solutions. We plan to complete all this by the end of 2024. I hope we will begin construction at the end of 2025 or beginning of 2026.”

The CEO of En+ also spoke about the part of the group’s business related to coal mining. According to him, the development of the Zashulanskoye field is already underway, and by 2028 it is planned to reach a production level of 5 million tons annually.

Khardikov is confident that our country needs planning for long-term energy development. The holding can help in developing the relevant document. The company is already developing the country’s energy power. In particular, the group took part in a competition for the construction of new generation in Siberia, where 460 MW of capacity was selected. The holding is ready to consider other projects in the region and throughout the country.

In the social sphere, a whole range of programs is being implemented to create personnel for energy and industrial enterprises, work is underway with young specialists, including at the school level, where competency development centers are being opened. The company’s management is well aware that the domestic energy sector requires a new generation of engineers, and has long been actively investing in the field of education and working with universities. In addition, the holding invests a lot of money in improving the standard of living of residents of the regions where it is present, developing sports, cultural and medical infrastructure.