En+ Group, the parent company of Rusal, which covers the energy and aluminium assets previously belonging to business tycoon Oleg Deripaska reported its first-quarter results on Friday, May 31.
The group’s first-quarter net profit fell by 39% to US$409 million due to the U.S. sanctions on the group and falling aluminium prices. En+ also reported its revenue dropped 19% to US$2.8 billion in the first quarter as a result of a 14% drop in LME aluminium prices and lower shipment volume.
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“The aluminium market continues to experience pricing pressure with only modest growth in global demand expected in 2019,” Vladimir Kiriukhin, En+’s chief executive, said in the statement.
EN+ was one of three companies linked with Russian oligarch Oleg Deripaska that had to face sanctions from the US treasury. Though the sanctions were lifted in January 2019, they had a serious effect on its first quarter results. Sales were also affected by the trade tensions created by 10% tariffs on all imported aluminium imposed by Trump administration.
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.
Kiriukhin blamed considerable challenges faced by the group during the reporting period for the results.
“…our key mid-term goal is further increasing the efficiency operational performance,” he added.
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