MOSCOW, April 18 (Reuters) - En+ Group, which manages Russian tycoon Oleg Deripaska’s aluminium and hydro power businesses, reported 2016 adjusted core earnings of $2.3 billion on Tuesday, in its first public disclosure of financial results in two years.
En+, owner of a 48 percent stake in aluminium giant Rusal , is considering an initial public offering (IPO) in 2017, financial market sources told Reuters previously.
En+’s 2016 adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) reached $2.3 billion. Rusal accounted for $1.5 billion of that sum, and EN+’s other businesses - power operations, coal mining and logistics - accounted for $822 million.
“These results reflect positive trends which we have seen continuing into 2017, notably stronger aluminium pricing and growing demand for electricity in Siberia,” Maxim Sokov, En+ chief executive, said in a statement.
En+’s performance was supported by an accelerated schedule for power capacity liberalisation and increased hydro power generation in Siberia. Sokov also said that he expected stronger aluminium pricing to continue in 2017 and to have a positive impact on the group’s top and bottom line.
Hong Kong-listed Rusal, the world’s second largest aluminium producer, is the major consumer of hydroelectricity produced by En+’s generating assets.
En+’s 2016 consolidated revenue totalled $9.8 billion, the group said. It did not disclose its results for 2015. It is the first public set of financial results from EN+ since it disclosed its 2014 revenues and adjusted EBITDA.
En+ Group is aiming to raise $2 billion by selling 20 percent of its shares during an IPO in London and possibly in Moscow, Russian newspaper Vedomosti reported in April, citing sources familiar with the matter.
The group picked VTB Capital, which holds a 4.35 percent in En+, as one of the arrangers for the possible sale along with U.S. banks Citi and JP Morgan and Russia’s Sberbank CIB, financial market sources have told Reuters.
VTB Capital, the investment banking arm of Russia’s second biggest bank VTB, bought its stake in En+ for $500 million in 2011, valuing the entire group at $11.5 billion. ($1 = 7.7748 Hong Kong dollars) (Reporting by Polina Devitt and Anastasia Lyrchikova; editing by Jane Merriman)