EN+ Group profits plunge after US sanctions impact
The Trump administration introduced the sanctions in April 2018, but removed them in January this year.
Aluminium and power giant EN+ group has reported a slump in profits for the first three months of 2019, after it was hammered by US sanctions and weaker pricing.
The firm, the parent company of Russian aluminium producer Rusal, saw net profit slide 38.7% to 409 million US dollars (£324 million)2.8 during the first quarter.
Revenue also declined significantly, falling 19.1% to 2.8 billion US dollars (£2.2 billion) for the period amid a decline in pricing and volumes.
EN+ blamed the decline on the challenges it faced in relation to the US sanctions, which have since been lifted in late January.
It was one of three companies linked with Russian oligarch Oleg Deripaska, an ally of Vladimir Putin, which saw sanctions lifted by the Trump administration.
The sanctions were lifted after Mr Deripaska signed up to a deal which means he now holds voting rights over 35% of the company’s shares and has lost control of its board.
The company saw weakened sales as a result, it said, while geopolitical trade tensions also weighed down on metal prices, with the price of aluminium falling 14% down on the previous year.
The firm said its power segment reported increases in total electricity and hydro power output, but was negatively impacted by depreciation of the rouble against the dollar.
Vladimir Kiriukhin, chief executive officer, said: “The group experienced considerable challenges during the reporting period.
“The aluminium market continues to experience pricing pressure with only modest growth in global demand expected in 2019.
“Thus, our key mid-term goal is further increasing the efficiency operational performance.”