ENRC profits double on production rises

 
City A.M. Reporter
KAZAKH miner ENRC met forecasts with full-year underlying profit that more than doubled, on record production and demand recovery, and said the global economic outlook was still improving.

“We remain positive on the group’s prospects for 2011, although the control of costs growth and the development of our assets in Africa will be important issues for management, as will be the continued near-term risk of commodity market volatility,” chief executive Felix Vulis said yesterday.

Pre-tax profit for 2010 rose 106.9 per cent to $2.97bn (£1.83bn), on revenue up 72 per cent to $6.60bn thanks to record production levels.

ENRC would not comment on speculation a publicly listed Glencore could make a bid.

ENRC said material prices and costs were expected to show significant increases in 2011, as it embarks on a $11.1bn capital expenditure programme.

Margin growth of 62 per cent offset a 28 per cent rise in 2010 costs.

Shares in the FTSE 100-listed miner yesterday increased by 3.5 per cent to 929.50.