En+ Group

En+ Group plc is an Anglo-Russian energy and metals company. It has a controlling stake in Rusal (the second largest producer of aluminium in the world) and is the world's largest independent hydropower generator.

En+ Group plc
TypePublic limited company
LSE: ENPL
MCX: ENPG
Industryenergy and metals
Founded2002 (2002) (Moscow)
HeadquartersMoscow, Russia
(Head office)
Saint Helier, Jersey
(Registered office)
Number of locations
3
Key people
Greg Barker (Chairman)
Revenue$11,752 million (2019)[1]
$1,862 million (2018)
Number of employees
Approximately 100,000 (2014)[2]
Websitewww.enplusgroup.com/en/

It is listed on the London Stock Exchange.

History

2002: En+ Group was established with predominant focus on the production of aluminium and alumina.   

2003: RUSAL Holding Limited was established following the corporate restructuring and consolidation of aluminium and alumina assets. These assets would later form the group of companies that now comprise UC RUSAL. The consolidation of RUSAL Holding Limited was completed in 2004, 100% of its shares were transferred to En+ Group.[3]   

2003: The Group acquired 64.0% of shares in Krasnoyarsk HPP, currently the tenth largest HPP globally in terms of installed capacity. Between 2003 and 2007, the Group acquired a further 4.3% interest in Krasnoyarsk HPP. In 2016, the Group increased its shareholding to 100%.   

2001 – 2007: The Group acquired 50.2% of the shares of Irkutskenergo, a power company that owns the Irkutsk, Bratsk and Ust-Ilimsk HPPs and several CHPs in the Irkutsk region of Russia, with an aggregate generation capacity of 12.8 GW. In 2016 the Group increased its shareholding to 90.8%.[4]   

2007: Following the acquisitions of SUAL Group by En+ Group, which at the time was one of the ten largest aluminium producers globally, and select aluminium and alumina businesses from Glencore, the current RUSAL was formed under UC RUSAL.[5]   

2008: UC RUSAL completed the acquisition of a 25% + 1 shares stake in Norilsk Nickel, the world's second largest producer of Nickel and one of the world's leading producers of platinum and copper.[6]   

2010: UC UC RUSAL held its initial public offering of shares and depositary receipts in Hong Kong.[7] The company later listed shares and depositary receipts on the Moscow Exchange.

2011: En+ established En+ logistics, to provide logistics services predominantly to its Energy Segment.[8]   

2014: Boguchansk HPP initiated operations (as part of the BEMO 50/50 joint venture between UC RUSAL and RusHydro).[9]   

2016: The first half of the first stage of the Boguchansk aluminium smelter (as part of the BEMO 50/50 joint venture between UC RUSAL and RusHydro) began operations with a production capacity of 149 thousand tonnes.[10]   

2017: En+ successfully lists on the London Stock Exchange, raising $1.5 billion from international investors, valuing the company at $8 billion. The IPO was largest Russian IPO globally since 2012 and the first IPO by a Russian company in London since 2014.[11]

US sanctions on En+ Group

On 6 April 2018 En+ Group was added to the SDN-list of the US Treasury.[12] On 27 April 2018 the chairman of the board of directors of the Group Lord Gregory Barker crafted a plan aimed at the de-listing of the company from the sanctions’ list (“The Barker plan”). The plan envisaged the reduction of Deripaska’s shareholding to below 50% and the creation of an independent board of directors.[13]

On 1 May 2018 the US Treasury extended the general licences, allowing for certain activities to sanctioned entities till 6 June 2018[14] (there were multiple extensions afterwards, the last on till 28 January 2019).[15]

On 21 July 2018 US Treasury Secretary Steven Mnuchin said in an interview that the objective was not to put the company out of business, but to limit Oleg Deripaska.[16]

On 19 December 2018 the US Treasury notified the Congress about its intention to lift sanctions against En+ Group following the corporate restructuring.[17]

Governance

In accordance with the agreement with OFAC the board of directors of En+ Group will consist of twelve directors with a majority of independent directors.[18] The Chairman of the Board of Directors is the Rt Hon Lord Barker of Battle PC.

Lord Barker was appointed as the Chairman of the Board of Directors in October 2017. In August 2015, Gregory Barker was made a life Peer and, since October 2015, has been a member of the House of Lords of the UK Parliament. Lord Barker served as member of the British House of Commons from 2001 to 2015. From 2010 to 2014, Lord Barker served as UK Minister of State for Energy & Climate Change, becoming the longest serving British energy minister for a generation.

The Chief executive officer of the Group is Vladimir Kiryukhin and the Chief operating officer is Vyacheslav Solomin.

Shareholding structure

Following the implementation of the Barker plan the shareholding of Oleg Deripaska will be cut to 44.95% and he will not be able to vote more than 35% of En+ Group shares.[19]

Group activities

En+ Group's operations combine 19.6 GW of installed electricity capacity, 75% of which are hydro power stations and aluminium production 3.9 mnt, which makes En+ Group the largest aluminium producer outside of China and the largest independent hydro power generating company globally.

Metals

Rusal, in which En+ Group holds a 48.1% stake, thereby providing the Group with strategic control, is a vertically-integrated aluminium producer. UC RUSAL is a clear low-cost leader in the production of aluminium, and accounted for approximately 6.2% of global aluminium output based on 2017 results.[20]

En+ Group's Metals segment operates 10 aluminium smelters and 7 alumina refineries, with its core smelting operations located in Siberia. In addition, UC RUSAL holds a strategic investment in Norilsk Nickel and a 50% interest in the BEMO Project (a joint venture between UC RUSAL and RusHydro comprising Boguchansk HPP and Boguchansk aluminium smelter).[21]

In 2017 En+ Group's Metals segment produced 3,707 thousand tonnes of aluminium, 7,773 thousand tonnes of alumina and 11,645 thousand tonnes of bauxites.[22]

Key assets of the En+ Group Metals segment
Aluminium smelters
Country Name Location Start of operations Annual production capacity, ktpa
 Russia Krasnoyarsk Aluminium Smelter Krasnoyarsk 1964 1019
 Russia Bratsk Aluminium Smelter Bratsk 1966 1008
 Russia Boguchansk Aluminium Smelter    Taezhny town    2016 588
 Russia Irkutsk Aluminium Smelter    Shelekhov    1962 529
 Russia Sayanogorsk Aluminium Smelter    Sayanogorsk 1985 524
 Russia Novokuznetsk Aluminium Smelter    Novokuznetsk 1943 322
 Russia Khakass Aluminum Smelter    Sayanogorsk    2006 297
 Russia Volgograd Aluminium Smelter    Volgograd 1959 168
 Russia Kandalaksha Aluminium Smelter    Kandalaksha 1951 76
 Sweden Kubikenborg Sundsvall    1943 128
Alumina refineries   
Country Name Location Start of operations    Annual production capacity, mtpa
 Russia Achinsk Alumina Refinery    Achinsk    1970 1,1
 Russia Bogoslovsk Aluminium Smelter    Krasnoturyinsk    1944 1,052
 Russia Urals Aluminum Smelter    Kamensk-Uralsky    1939 0,768
 Australia Queensland Alumina Ltd (20%) Gladstone    1967 4,058
 Ireland Aughinish Alumina Aughinish island    1983 1,990
 Jamaica Windalco Jamaica    1953 1,21
 Guinea Friguia Bauxite and Alumina Complex    Fria    1960 0,65


Bauxite production sites   
Country Name Location Start of operations Annual production capacity, ktpa
 Russia North Urals Bauxite Mine Severouralsk 1938 3,0
 Russia Timan Bauxite    Ukhta    1992 3,2
 Guinea Compagnie des Bauxites de Kindia    Kindia    1974 3,4
 Guinea Friguia Alumina Complex    Fria 1960 2,1
 Guyana Bauxite Company of Guyana Inc Georgetown 2004 1,7

Energy

En+ Group operates generating assets with 19.6 GW of installed electricity capacity. As of 31 December 2016, hydro power plants accounted for 76.6% (15.1 GW) of the Group's installed electricity capacity, which makes the Company the largest privately held hydro power generation company globally. As at 31 December 2016, the Group held an 8% share of the total installed electricity capacity in Russia.[23]

The Group's power assets are predominantly located in Siberia, where it has a 37.6% share of total installed electricity capacity in the region. The hydro power operations benefit from the abundant water resources of the Angara and Yenisei river cascades. These plants provide sustainable, low carbon and low-cost power for Russian industrial facilities, including Metals segment's core aluminium smelters. The Group believes that it benefits from lower operating costs compared to other hydro power generation companies in part due to the geographic location, scale and efficient management of the power generating assets.[24]

En+ Group's Energy segment is a member of the Global Sustainable Electricity Partnership, a non-profit organisation whose members are the world's leading electricity companies, supplying energy to over 1.2 billion customers.[25]

In 2017, En+ Group produced 68.4TWh of electricity and 26.7mn Gcal of heat.[26]

Key assets of the En+ Group Energy segment
Hydropower plants
Country Name Location Start of operations Installed capacity, MW
 Russia Krasnoyarsk HPP Divnogorsk 1972 — 6000
 Russia Bratsk HPP Bratsk 1966 — 4500
 Russia Ust-Ilimsk HPP    Ust-Ilimsk    1980 — 3840
 Russia Irkutsk HPP Irkutsk 1956 — 662
Combined heat plants
Country Name Location Start of operations Installed capacity, MW
 Russia CHP-10 Angarsk 1959 1100
 Russia CHP-9 Angarsk 1963 540
 Russia Novo-Irkutsk CHP Irkutsk 1975 708
 Russia Ust-Ilimsk CHP    Ust-Ilimsk    1978 515
 Russia CHP-11 Usolye-Sibirskoye 1959 350
 Russia CHP-6 Bratsk 1965 270
 Russia Novo-Ziminskaya CHP    Sayansk 1980 260
 Russia Avtozavodskaya CHP    Nizhny Novgorod    1931 580

Renewables

In 2015 En+ Group commenced the operations of the Abakan solar power plant. Its installed capacity is 5.2 MW, which makes it the largest solar power plant of Eastern Siberia.[27]

Key figures
Financial data in USD billions
Year 9M2018 9M2017 FY2017 FY2016
Revenue 9,434 8,716 12,094 9,776
Adj. EBITDA 2,618 2,316 3,223 2,311
Net profit 1,623 898 1,403 1,361
Operational highlights
Measurement unit 9M2018 9M2017 FY2017 FY2016
Aluminium production Tonnes, 000 2,810 2,762 3,707 3,685
Primary aluminium and alloy sales Tonnes, 000 2,794 2,955 3,955 3,818
Alumina production Tonnes, 000 5,816 5,782 7,773 7,527
Bauxite production Tonnes, 000 10,128 8,701 11,645 12,187
Total electricity generation TWh 53,2 50,4 68,4 69,5
Total heat generation Gcal, 000 18,4 17,5 26,7 27,4

References
  1. "About us". En+ Group Ltd. Retrieved 20 October 2020.
  2. "Facts and figures". En+ Group Ltd. Archived from the original on 11 March 2013. Retrieved 19 February 2013.
  3. "En+ Group plc" (PDF).
  4. "Irkutskenergo. En+ Group completes the acquisition of a 40.29% shareholding in Irkutskenergo from Inter RAO". en.irkutskenergo.ru. Retrieved 23 January 2019.
  5. "Russian merger to create world's top aluminium producer". euronews. 30 August 2006. Retrieved 23 January 2019.
  6. "UPDATE 5-UC RUSAL buys 25 pct of Russian miner Norilsk". Reuters. 24 April 2008. Retrieved 23 January 2019.
  7. "Subscribe to read". Financial Times. Retrieved 23 January 2019. Cite uses generic title (help)
  8. "En + Group has opened permanent train traffic across the bridge over the river Abakan in Hakassia - Russian Metallurgy news - Metal Supply and Sales Magazine". www.metalinfo.ru. Retrieved 23 January 2019.
  9. "Boguchanskaya HPP". www.eng.rushydro.ru. Retrieved 23 January 2019.
  10. "UPDATE 1-Russia's Rusal to start Boguchansk aluminium smelter in H1". Reuters. 9 March 2016. Retrieved 23 January 2019.
  11. "Russia's En+ Group lists on London Stock Exchange". London Stock Exchange Group. Retrieved 23 January 2019.
  12. "Treasury Designates Russian Oligarchs, Officials, and Entities in Response to Worldwide Malign Activity | U.S. Department of the Treasury". home.treasury.gov. Retrieved 23 January 2019.
  13. www.bloomberg.com https://www.bloomberg.com/news/articles/2018-07-25/en-ready-to-implement-sanctions-relief-plan-as-deadline-looms. Retrieved 23 January 2019. Missing or empty |title= (help)
  14. "​​Issuance of Ukraine-/Russia-related General Licenses; Publication of New FAQs and Updated FAQs". www.treasury.gov. Retrieved 23 January 2019.
  15. "Temporary Extension of Ukraine-related General Licenses". www.treasury.gov. Retrieved 23 January 2019.
  16. "Exclusive: U.S. open to lifting sanctions off aluminum giant Rusal..." Reuters. 21 July 2018. Retrieved 23 January 2019.
  17. "OFAC Notifies Congress of Intent to Delist En+, Rusal, and EuroSibEnergo | U.S. Department of the Treasury". home.treasury.gov. Retrieved 23 January 2019.
  18. "Biting the bullet, not the dust: Deripaska gives up his aluminum..." Reuters. 21 December 2018. Retrieved 23 January 2019.
  19. "Subscribe to read". Financial Times. Retrieved 23 January 2019. Cite uses generic title (help)
  20. "RUSAL Annual report 2017" (PDF).
  21. "En+ Annual report 2017" (PDF).
  22. "En+ 2017 Operational results" (PDF).
  23. "EN+ GROUP PLC ANNOUNCES INTENTION TO FLOAT ON THE LONDON STOCK EXCHANGE AND MOSCOW EXCHANGE" (PDF).
  24. "Subscribe to read". Financial Times. Retrieved 24 January 2019. Cite uses generic title (help)
  25. "EuroSibEnergo (ESE)". GSEP. Retrieved 24 January 2019.
  26. "En+ 2017 Operational results" (PDF).
  27. "Abakan launched the largest in Siberia solar power plant. · News · Tour Operator "Sayan Ring" - welcome to Siberia". www.sayanring.com. Retrieved 24 January 2019.
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