Shake-up for ENRC’s board as profit dips

MINER ENRC yesterday signalled that it would be making more boardroom changes as it reported profits which fell short of City forecasts.

The FTSE 100 company said pre-tax profits fell 7.5 per cent to $2.8bn (£1.7bn) after hits due to the rising cost of labour and energy.

Revenues rose 17 per cent to $7.7bn last year but that was overshadowed by a 24 per cent jump in costs.

Mehmet Dalman, who took over as chairman of the Kazakh miner last month indicated that changes were on the way.

“We have continued to review board composition, mindful of the need to progressively refresh the board, with a view to affording it with talented and dedicated directors exhibiting, amongst other qualifications, domain knowledge, long experience of best-in-class corporate governance practices, as well as corporate finance and strategy,” he said in a statement. Dalman replaced Johannes Sittard, who had been expected to stand down following a corporate governance review. Deputy chairman Sir Richard Sykes and non-executive director Ken Olisa were removed from the board at the same time. ENRC announced a final dividend of 11 cents per share, taking the full-year dividend to 27 cents, compared to 30.5 cents the previous year

The company postponed a vote in April on its plans to spend $650m buying outstanding shares in coal producer Shubarkol.