Profit rises at En+ following its London float

Courtney Goldsmith
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En+ operates aluminium and hydropower businesses (Source: Getty)

Net profit rose in the third quarter at Russia's En+ Group in its first set of results since listing on the London Stock Exchange.

The figures

The aluminium and power company which manages Russian billionaire Oleg Deripaska's businesses, revealed its third quarter net profit rose 43 per cent year-on-year to $350m (£260m).

En+ said its revenue in the third quarter grew by 17 per cent to $2.9bn, and adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) jumped 41 per cent to $803m.

The group's net debt as of the end of September was $13.1bn, down five per cent from the second quarter.

Read more: Former energy minister Lord Barker has been named the chairman of En+

​Why it's interesting

The company's initial public offering (IPO) in November was the largest listing in the metals and mining and energy segments in London so far this year, and chief executive Maxim Sokov said both the company's energy and metals businesses delivered "outstanding" results.

"This growth was driven by positive trends in the global aluminium markets, our continued focus on production efficiency and supportive developments in the Russian electricity market," Sokov said.

The company also today announced the appointment of Guang Ming Zhao, executive director and chief executive of AnAn International, a subsidiary of AnAn Group, as a non-executive director on its board.

AnAn was entitled to appoint one member to the board following its cornerstone investment in En+ Group's IPO.

What En+ said

Sokov said:

The company saw demand from a wide range of international investors, who appreciated the unique business model and attractive investment case of En+ Group, in particular the full integration of its clean hydropower and aluminium operations.

In line with pre-IPO commitments, the proceeds of the offering have been spent on deleveraging: in November, ahead of schedule the group repaid in full its VTB loan totalling $942m.

Read more: En+ has priced its $8.5bn London float

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