MOSCOW, April 18 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
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)