- EN+ Group said revenue fell by nearly a fifth in the first quarter as 'external factors,' including ongoing US-China trade war drove down aluminium prices and hurt electricity sales.

For the three months ended 31 March, revenue declined 19.1% to $2.8bn, 37.7% adjusted earnings (EBITDA) fell 37.7% to $579m, and net profit slumped by 38.7% to $409m

The downbeat performance was driven mainly by external factors including a 13.9% decrease in average LME aluminium prices and substantial FX fluctuations. This was compounded by lower alumina and aluminium sales volumes, the company added.

The power segment's revenue decreased by 12.4% to $874m year-on-year, with sales of electricity and heat down by 7.9% for the quarter.

'The Group experienced considerable challenges during the reporting period. Our financial performance was severely affected as a result of the short Office of Foreign Assets Control general license extensions that existed until the removal of sanctions on January 27,' said Vladimir Kiriukhin, CEO of En+ Group.

'Within the Metals segment, this resulted in commodity sales being impacted and value-added-product ("VAP") sales weakening significantly. This was further compounded by aluminium prices that continued to fall as a result of geopolitical trade tensions, leading to a material decline in revenues and profitability.'

'Despite this, both our segments continued to invest in key capacity expansion projects to ensure the Group maintains its vertically integrated competitive advantage.'

'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.'

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