En+ GROUP IPJSC (the 'Company', '
1Q 2020 key highlights
Aluminium production increased 1.3% y-o-y to 940 kt.
Aluminium sales increased 2.0% y-o-y to 914 kt.
The average aluminium realised price[2] decreased 4.4% y-o-y to
The share of value added products[3] (VAP) in the Metals segment's aluminium sales increased to 46% in 1Q 2020 from 29% in 1Q 2019, with VAP sales increasing 62.9% y-o-y to 421kt.
The Group's Power segment electricity production[4] increased 10.9% y-o-y to 21.3 TWh.
The Group's Power segment hydro power4 output increased 15.5% y-o-y to 16.4 TWh.
Vladimir Kiriukhin, CEO of En+ Group, commented: 'Just a few months ago, COVID-19 was considered by many to be an issue with limited potential reach and implications. It was not until 11 March that the WHO declared a global pandemic. As a result, the global economy performed steadily in 1Q 2020 with only
However, from mid-March, the rapid lockdown of key economies, the closing of borders and the introduction of rigid, but necessary, new sanitary norms inevitably hit the manufacturing sector and, consequently, our end markets.
While we anticipate that the impact of COVID-19 will be more visible in our 2Q 2020 results, some indications of the current disruption can already be seen: in 1Q global primary aluminium demand dropped by 6.4%. Coupled with growing global production, this has led to a surplus of the metal, weighing on prices.
Irrespective of newly posed by COVID-19 economic challenges, our priority right now is the health and safety of our global workforce. To protect our employees from the virus we are committed to following all of the protocols recommended by the authorities of the countries in which we operate, as well as the
While the full extent of the pandemic's impact is as yet unclear, we expect it to drive a major transformation of the global aluminium industry in the mid-term with expected production curtailments and greenfield projects' overhaul. Amid this challenge, we continue to remain firm in our commitment to low-carbon production and development. We believe even more strongly now that the long-term sustainability of our industry is contingent on companies following a path that aligns firmly with the sustainability of our planet. '
Virus response key highlights
In mid-March the Group introduced distance working. On-duty staff who need to work on site are being provided with a full range of virus protection tools.
En+ Group purchased and supplied 800,000 medical masks to the
The Group launched an initiative to deliver free food supplies to 16,000 of its retired former employees, many of whom are considered high-risk for infection and are therefore unable to leave their homes during the coronavirus pandemic.
Contact:
Tel: +7 495 642 79 37
Email: press-center@enplus.ru
This announcement may include statements that are, or may be deemed to be, 'forward-looking statements'. These forward-looking statements may be identified by the use of forward-looking terminology, including the terms 'believes', 'estimates', 'plans', 'projects', 'anticipates', 'expects', 'intends', 'may', 'will' or 'should' or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. Forward-looking statements may and often do differ materially from actual results. Any forward-looking statements reflect the Company's current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Group's business, results of operations, financial position, liquidity, prospects, growth or strategies. Forward-looking statements speak only as of the date they are made.
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