Financial review
| As at or for the year ended 31 December | |||
|---|---|---|---|
| 2024 | 2023 | 2022 | |
| Revenue | 14,649 | 14,648 | 16,549 |
| Gross profit | 4,433 | 3,282 | 4,493 |
| Gross profit margin | 30.3% | 22.4% | 27.1% |
| Results from operating activities (EBIT) | 1,506 | 1,030 | 2,006 |
| Operating profit margin | 10.3% | 7.0% | 12.1% |
| Pre‑tax profit | 1,569 | 876 | 2,453 |
| Profit for the year | 1,348 | 716 | 1,846 |
| Net profit margin | 9.2% | 4.9% | 11.2% |
| Adjusted EBITDA | 2,927 | 2,157 | 3,119 |
| Adjusted EBITDA margin | 20.0% | 14.7% | 18.8% |
| Net debt | 8,881 | 8,717 | 10,123 |
| Net working capital | 4,366 | 3,417 | 4,474 |
| Free cash flow | (547) | 642 | (633) |
| Basic earnings per share | 1.983 | 1.186 | 2.156 |
| Equity attributable to shareholders of the Company | 7,543 | 6,921 | 7,480 |
The Group’s financial results are disclosed both on a consolidated basis and for the Power and Metals segments.
When making period‑to‑period comparisons of financial results, the Group presents consolidated results after intersegmental eliminations in order to analyse changes, developments, and trends by reference to the individual segment’s operating results (the Power and Metals segments). Amounts attributable to the segments are presented before intersegmental eliminations.
Revenue
The following table presents the Group’s revenue from sales broken down by core product, for the years indicated.
| USD mn | Year ended 31 December | ||
|---|---|---|---|
| 2024 | 2023 | 2022 | |
| Sales of primary aluminium and alloys | 9,538 | 9,933 | 11,384 |
| Sales of electricity | 1,777 | 1,646 | 1,844 |
| Sales of alumina and bauxite | 754 | 513 | 557 |
| Sales of semi‑finished products and foil | 899 | 864 | 921 |
| Sales of heat | 429 | 476 | 525 |
| Other revenue | 1,252 | 1,216 | 1,318 |
| Total revenues | 14,649 | 14,648 | 16,549 |
The following table presents the Group’s revenue by business segment for the years indicated.
| USD mn | Year ended 31 December | ||
|---|---|---|---|
| 2024 | 2023 | 2022 | |
| Metals segment | 12,082 | 12,213 | 13,974 |
| Power segment | 3,853 | 3,587 | 3,885 |
| Business segment revenues | 15,935 | 15,800 | 17,859 |
| Elimination of intersegmental revenues | (1,286) | (1,152) | (1,310) |
| Total revenues | 14,649 | 14,648 | 16,549 |
The Group’s revenue is mainly attributable to the Metals segment’s operations. It remained consistent with the figures from 2023, totalling USD 14,649 million in 2024.
A decrease of 1.1% in revenues of the Metals segment to USD 12,082 million, mainly due to a decrease in sales of primary aluminium and alloys by 7.1% year‑on‑year, was offset by a growth in revenues of the Power segment resulting from increased sales and a higher average price of electricity in the day‑ahead market for the second pricing zone.
Cost of sales
The following table presents the Group’s cost of sales by segment for the years indicated.
| USD mn | Year ended 31 December | ||
|---|---|---|---|
| 2024 | 2023 | 2022 | |
| Metals segment | 9,261 | 10,445 | 10,770 |
| Power segment | 2,215 | 2,143 | 2,422 |
| Business segment cost of sales | 11,476 | 12,588 | 13,192 |
| Elimination of intersegmental cost of sales | (1,260) | (1,222) | (1,136) |
| Total cost of sales | 10,216 | 11,366 | 12,056 |
The cost of sales in the Power and Metals segments reflects costs directly associated with the sale and production of the core products and services of both segments. For the Power segment, the cost of sales primarily includes the costs of electricity and capacity purchased for resale, raw materials and fuel, personnel expenses, and depreciation and amortisation.
For the Metals segment, the cost of sales mainly consists of the cost of alumina, bauxite, other raw materials, energy, personnel expenses, and depreciation and amortisation.
The Group’s cost of sales dropped by USD 1,150 million, or 10.1%, from USD 11,366 million in 2023 to USD 10,216 million in 2024 due to lower purchase prices for raw materials (excluding alumina and bauxite) and a 7.1% decrease in sales volumes of primary aluminium and alloys by the Metals segment.
Distribution, general and administrative expenses
The Group’s distribution, general and administrative expenses rose in 2024 by USD 174 million, or 10.1%, to USD 1,892 million from USD 1,718 million in 2023, driven by changes in sales chains and increased personnel costs.
Finance income and costs
The Group’s finance income primarily consists of interest income and net foreign exchange gains. The Group’s finance costs primarily consist of interest expense and net foreign exchange loss.
The Company’s finance income rose by USD 324 million, or 270%, to USD 444 million in 2024 from USD 120 million in 2023, mainly due to net foreign exchange gains in 2024 compared to a loss in 2023.
The finance costs fell by USD 82 million, or 8%, from USD 1,026 million in 2023 to USD 944 million in 2024 also due to foreign exchange gains compared to losses on this item in 2023, which were partially offset by a rise in interest expenses due to an increase of the key rate of the Bank of Russia to 21% in 2024.
| USD mn | Year ended 31 December | ||
|---|---|---|---|
| 2024 | 2023 | 2022 | |
| Finance income | |||
| Net foreign exchange gain | 221 | ‑ | ‑ |
| Interest income | 160 | 93 | 115 |
| Change in fair value of derivative financial instruments | 61 | ‑ | ‑ |
| Revaluation of financial assets and liabilities | ‑ | ‑ | 31 |
| Other finance income | 2 | 27 | 38 |
| Total finance income | 444 | 120 | 184 |
| Finance costs | |||
| Interest expense | (830) | (748) | (988) |
| Net foreign exchange loss | ‑ | (85) | (111) |
| Change in fair value of derivative financial instruments | ‑ | (99) | (191) |
| Revaluation of financial assets and liabilities | (114) | (94) | ‑ |
| Total finance costs | (944) | (1,026) | (1,290) |
Income tax expense
The Group’s income tax expense grew by USD 61 million, or 38.1%, to USD 221 million in 2024 from USD 160 million in 2023 as a result of higher pre‑tax profit in 2024 as compared to 2023.
Current tax expense for the period decreased by USD 8 million, or 2.2%, primarily due to the one‑time effect of windfall tax recognised in 2023.
The Group’s deferred tax income dropped by USD 69 million, from USD 210 million to USD 141 million, primarily due to the tax effect of the accrual of temporary differences related to foreign exchange differences.
Results from operating activities of the Group
The Group’s results from operating activities rose by USD 476 million, or 46.2%, from USD 1,030 million in 2023 to USD 1,506 million in 2024.
Results from operating activities attributable to the Metals segment grew by USD 447 million from USD (79) million in 2023 to USD 368 million. Results from operating activities attributable to the Power segment increased by USD 122 million, or 11.9%, from USD 1,027 million in 2023 to USD 1,149 million in 2024.
The Group’s operating profit margin grew from 7.0% in 2023 to 10.3% in 2024.
| USD mn | Year ended 31 December | ||
|---|---|---|---|
| 2024 | 2023 | 2022 | |
| Adjusted EBITDA reconciliation | |||
| Results from operating activities | 1,506 | 1,030 | 2,006 |
| Adjusted for: | |||
| 753 | 765 | 720 |
| 7 | (4) | 23 |
| 661 | 366 | 370 |
| Adjusted EBITDA | 2,927 | 2,157 | 3,119 |
The following table sets forth the Group’s adjusted EBITDA and adjusted EBITDA margin by segment (before intersegmental elimination) for the years indicated:
| USD mn | Year ended 31 December | ||
|---|---|---|---|
| 2024 | 2023 | 2022 | |
| Adjusted EBITDA, Metals segment | 1,494 | 786 | 2,028 |
| Adjusted EBITDA, Power segment | 1,446 | 1,292 | 1,254 |
| Adjusted EBITDA | 2,927 | 2,157 | 3,119 |
| Adjusted EBITDA margin, Metals segment | 12.4% | 6.4% | 14.5% |
| Adjusted EBITDA margin, Power segment | 37.5% | 36.0% | 32.3% |
| Adjusted EBITDA margin, Group | 20.0% | 14.7% | 18.8% |
The Group’s adjusted EBITDA increased by USD 770 million, or 35.7%, to USD 2,927 million in 2024 from USD 2,157 million in 2023. The growth in 2024 compared to 2023 was primarily driven by the same factors that affected the Group’s operating results.
Profit
The Group’s gross profit increased by USD 1,151 million, or 35.1%, to USD 4,433 million in 2024 from USD 3,282 million in 2023. The Group’s gross profit margin went up from 22.4% in 2023 to 30.3% in 2024.
The Group recorded a profit before tax of USD 1,569 million in 2024 as compared to USD 876 million in 2023.
For the reasons described above, the Company’s profit for the year ended 31 December 2024 was USD 1,348 million, compared to a profit of USD 716 million for the year ended 31 December 2023.
| USD mn | Year ended 31 December | ||
|---|---|---|---|
| 2024 | 2023 | 2022 | |
| Share of profit in Norilsk Nickel | 347 | 629 | 1,440 |
| 15.01% | 15.01% | 15.01% |
| Share of profit in the BEMO project | 93 | 93 | 102 |
| 28.44% | 28.44% | 28.44% |
| Share of profit in Hebei Wenfeng New Materials Co., Ltd. | 138 | n/a | n/a |
| 17.06% | n/a | n/a |
| Share of profit in other associates / joint ventures | (15) | 30 | 11 |
| Share of profits of associates and joint ventures | 563 | 752 | 1,553 |
The Group has a number of associates and joint ventures, which are accounted for in its Financial Statements under the equity method. The principal associates and joint ventures include Norilsk Nickel, Queensland Alumina Limited, the BEMO project and Hebei Wenfeng New Materials Co., Ltd (alumina refinery in China).
The Group’s share of profit of its associates and joint ventures declined by USD 189 million, or 25.1%, to USD 563 million in 2024 from USD 752 million in 2023.
The change in the share of profit of associates and joint ventures in 2024 as compared to 2023 can primarily be attributed to lower profit from the Group’s investment in Norilsk Nickel.
Net assets
The Group’s net assets increased by USD 700 million to USD 12,281 million as at 31 December 2024 from USD 11,581 million as at 31 December 2023.
In 2024, net assets of the Metals segment grew by USD 200 million, or 1.8%, to USD 11,216 million as at 31 December 2024 from USD 11,016 million as at 31 December 2023. The increase in total assets was the main factor behind this, primarily resulting from a boost in the carrying values of investments in associates and joint ventures, inventories, and trade and other receivables, although it was partially offset by a drop in cash and cash equivalents.
2024 saw net assets of the Power segment rise by USD 505 million, or 8.7%, to USD 6,329 million as at 31 December 2024 from USD 5,824 million as at 31 December 2023, primarily due to an increase in cash and cash equivalents, the carrying amounts of property, plant and equipment, inventories, trade and other receivables.
| USD mn | Year ended 31 December | ||
|---|---|---|---|
| 2024 | 2023 | 2022 | |
| Group | |||
| Non‑current assets | 18,412 | 18,020 | 20,176 |
| Current assets | 9,061 | 8,368 | 10,502 |
| Non‑current liabilities | (6,624) | (10,015) | (11,479) |
| Current liabilities | (8,568) | (4,792) | (6,467) |
| Net assets | 12,281 | 11,581 | 12,732 |
| Metals segment | |||
| Non‑current assets | 13,840 | 13,522 | 14,516 |
| Current assets | 8,361 | 7,942 | 10,115 |
| Non‑current liabilities | (4,226) | (6,729) | (7,733) |
| Current liabilities | (6,759) | (3,719) | (4,591) |
| Net assets | 11,216 | 11,016 | 12,307 |
| Power segment | |||
| Non‑current assets | 9,682 | 9,608 | 10,770 |
| Current assets | 1,028 | 819 | 816 |
| Non‑current liabilities | (2,417) | (3,297) | (3,758) |
| Current liabilities | (1,964) | (1,306) | (2,065) |
| Net assets | 6,329 | 5,824 | 5,763 |
Net working capital
Net working capital is defined as inventories plus short‑term trade and other receivables (excluding dividends receivable), less trade and other payables (excluding dividends payable).
As at 31 December 2024, the Group’s net working capital amounted to USD 4,366 million, compared to USD 3,417 million as at 31 December 2023. In 2024, net working capital increased by 27.8% vs. 2023 mainly due to an increase in inventories.
The following table presents the calculation of net working capital of the Group, the Power segment, and the Metals segment as at the dates indicated.
| USD mn | Year ended 31 December | ||
|---|---|---|---|
| 2024 | 2023 | 2022 | |
| Group | |||
| Inventories | 4,458 | 3,575 | 4,383 |
| Short‑term trade and other receivables | 2,560 | 2,330 | 2,514 |
| Dividends receivable | (29) | (412) | ‑ |
| Trade and other payables | (2,628) | (2,081) | (2,423) |
| Dividends payable | 5 | 5 | ‑ |
| Net working capital | 4,366 | 3,417 | 4,474 |
| Metals segment | |||
| Inventories | 4,477 | 3,599 | 4,489 |
| Short‑term trade and other receivables | 2,250 | 2,112 | 2,263 |
| Dividends receivable | (29) | (412) | ‑ |
| Trade and other payables | (2,117) | (1,639) | (1,919) |
| Dividends payable | 5 | 5 | ‑ |
| Net working capital | 4,586 | 3,665 | 4,833 |
| Power segment | |||
| Inventories | 186 | 164 | 161 |
| Short‑term trade and other receivables | 433 | 373 | 363 |
| Trade and other payables | (666) | (675) | (693) |
| Net working capital | (47) | (138) | (169) |
In 2024, the Group’s liquidity requirements primarily related to funding working capital, capital expenditures, and debt servicing. The Group used a variety of internal and external sources to finance its operations. During the periods under review, short‑ and long‑term funding sources included mostly rouble and foreign currency‑denominated secured and unsecured loans from Russian and international banks, as well as debt instruments issued in both the Russian and international capital markets.
Liquidity was managed separately in both the Power and Metals segments.
Dividends
During the years ended 31 December 2024 and 31 December 2023, EN+ GROUP IPJSC neither declared nor paid any dividends.
Cash flows
The following table presents the Group’s selected cash flow data for the periods indicated.
| USD mn | Year ended 31 December | ||
|---|---|---|---|
| 2024 | 2023 | 2022 | |
| Cash flows from operating activities | 1,658 | 2,721 | 572 |
| Cash flows (used in) / from investing activities | (1,621) | (1,419) | 47 |
| Cash flows (used in) / from financing activities | (354) | (2,277) | 742 |
| Net change in cash and cash equivalents | (317) | (975) | 1,361 |
| Cash and cash equivalents at the beginning of the period, excluding restricted cash | 2,345 | 3,474 | 2,328 |
| Effect of exchange rate changes on cash and cash equivalents | (147) | (154) | (215) |
| Cash and cash equivalents at the end of the period, excluding restricted cash | 1,881 | 2,345 | 3,474 |
| Free cash flow | (547) | 642 | (633) |
Cash flows from operating activities
In 2024, cash flows from the Group’s operating activities amounted to USD 1,658 million, which was USD 1,063 million lower than in 2023 (USD 2,721 million) due to an increase in working capital.
Cash flows used in investing activities
The Group’s net cash flows used in investing activities for the year ended 31 December 2024 amounted to USD 1,621 million compared to USD 1,419 million in the previous year.
The change was driven by an increase in capital expenditures of USD 430 million between comparable periods, an increase of USD 416 million in dividends from associates and joint ventures and a USD 303 million acquisition of a joint venture.
Cash flows used in financing activities
The Group’s cash flows used in financing activities amounted to USD 354 million in 2024.
A rise of USD 1,923 million (in 2023, cash flows used in financing activities amounted to USD 2,277 million) was primarily due to net proceeds from loans and bonds totalling USD 535 million in 2024 compared to net raise of loans and bonds totalling USD 1,559 million for the previous year, as well as an increase of USD 247 million in interest payments.
Free cash flow
| USD mn | Year ended 31 December | ||
|---|---|---|---|
| 2024 | 2023 | 2022 | |
| Group | |||
| Cash flows from operating activities | 1,658 | 2,721 | 572 |
| Adjusted for: | |||
| (1,878) | (1,448) | (1,711) |
| 416 | ‑ | 1,639 |
| 146 | 84 | 104 |
| (929) | (682) | (987) |
| (23) | (31) | (21) |
| 63 | (2) | (229) |
| Free cash flow | (547) | 642 | (633) |
| Metals segment | |||
| Cash flows from operating activities | 483 | 1,760 | (412) |
| Adjusted for: | |||
| (1,366) | (1,056) | (1,239) |
| 416 | ‑ | 1,639 |
| 116 | 61 | 70 |
| (494) | (422) | (428) |
| (15) | (30) | (17) |
| 63 | (2) | (229) |
| Free cash flow | (797) | 311 | (616) |
| Power segment | |||
| Cash flows from operating activities | 1,133 | 963 | 986 |
| Adjusted for: | |||
| (519) | (394) | (474) |
| 30 | 23 | 34 |
| (435) | (260) | (559) |
| (8) | (1) | (4) |
| Free cash flow | 201 | 331 | (17) |
Capital expenditures
In 2024 and 2023, the Group’s capital expenditures (including the acquisition of property, plant and equipment and intangible assets) amounted to USD 1,878 million and USD 1,448 million, respectively.
The Group’s subsidiaries financed their cash requirements through a combination of operating cash flows and borrowings.
The Metals segment recorded a total capital expenditure of USD 1,366 million for the year ended 31 December 2024. The Metals segment’s capital expenditure in 2024 was aimed at maintaining existing production facilities. Maintenance capex amounted to 58% of total capex for 2024.
In 2024, capital expenditure of the Group’s Power segment amounted to USD 519 million. Maintenance capex accounted for 32% of total capital expenditure. The Group’s Power segment channelled investments into the construction of new generating capacities to cover the energy deficit in south‑eastern Siberia. It also continued to invest in connections to its power supply infrastructure and improving the efficiency of the Group’s CHPs, further advancing its New Energy HPP modernisation programme.
Cash
At 31 December 2024 and 31 December 2023, the Group’s cash and cash equivalents, less restricted cash, were USD 1,881 million and USD 2,345 million, respectively.
At 31 December 2024 and 31 December 2023, cash and cash equivalents of the Power segment amounted to USD 380 million and USD 260 million, respectively. Cash and cash equivalents of the Metals segment equalled USD 1,501 million and USD 2,085 million, respectively.
Loans and borrowings
The nominal value of the Group’s loans and borrowings was USD 6,166 million as at 31 December 2024, excluding bonds, which represented an additional USD 4,569 million.
Debt portfolio breakdown as of 31 December 2024
Metals segment
Power segment
Below is an overview of certain key terms of selected facilities in the Group’s debt portfolio as at 31 December 2024.
| Facility/lender | Principal amount outstanding as at 31 December 2024 | Tenor / repayment schedule | Pricing |
|---|---|---|---|
| Metals segment | |||
| Credit facilities | |||
| Pre‑export credit facilities | CNY 8.0 bn | Until January 2026, bullet repayment at the final maturity date | 5.25% — LPR 1Y + 3.1% p.a. |
| Russian bank loans | CNY 11.9 bn | December 2027, equal quarterly repayments starting from March 2024 | 4.75% p.a. |
| RUB 108 bn | June 2029, repayment on schedule | Key rate of the Bank of Russia plus margin, p.a. | |
| RUB 22.2 bn | December 2035, quarterly repayments | Key rate of the Bank of Russia plus 3.15% p.a. | |
| Bonds | |||
| CNY bonds | CNY 22 bn | 12 tranches, the last repayment in July 2027 | 3.75% — 8.5% p.a. |
| Rouble bonds | RUB 50 bn | 3 tranches, last repayment in August 2029 | Key rate of the Bank of Russia plus 2.2 |
| Power segment | |||
| Corporate loans | |||
| Russian bank loans | RUB 122 bn | Quarterly repayments, the last repayment in December 2026 | Key rate of the Bank of Russia plus 1.5% p.a. |
| Bonds | |||
| CNY bonds | CNY 6.7 bn | 5 tranches, the last repayment in November 2026, bullet repayment at the final redemption date | 4.45% — 8.1% p.a. |
| Rouble bonds | RUB 7 bn | Bullet repayment in December 2026 | Key rate of the Bank of Russia plus 5% p.a. |
Security
As at 31 December 2024, the Group’s debt (save for several unsecured loans and bonds) was secured, among others, by certain pledges of shares and interest in a number of the Group’s subsidiaries, assignment of accounts, and shares in Norilsk Nickel (representing 25% + 1 share of Norilsk Nickel’s total nominal issued share capital).
As at 31 December 2024, the Power segment’s debt was secured, among others, by pledges of shares and interests in certain operating and non‑operating companies and property, plant and equipment.
Gearing
The Group’s gearing ratio—the ratio of total debt (including both long‑term and short‑term borrowings and bonds outstanding) to total assets—was 39.2% and 41.9% as at 31 December 2024 and 31 December 2023, respectively.
Return on equity
The Group’s return on equity—the amount of net profit as a percentage of total equity—was 11.0% and 6.2% as at 31 December 2024 and 31 December 2023, respectively.
Interest coverage ratio
The Group’s interest coverage ratio—the ratio of earnings before interest and taxes to net interest—was 2.2x and 1.6x for the years ended 31 December 2024 and 31 December 2023, respectively.
Analysis of results by segment
| USD mn | For the year ended 31 December | ||
|---|---|---|---|
| 2024 | 2023 | 2022 | |
| Revenue | 12,082 | 12,213 | 13,974 |
| Gross profit | 2,821 | 1,768 | 3,204 |
| Gross profit margin | 23.3% | 14.5% | 22.9% |
| Pre‑tax profit | 858 | 244 | 2,166 |
| Profit for the period | 803 | 282 | 1,793 |
| Net profit margin | 6.6% | 2.3% | 12.8% |
| Adjusted EBITDA | 1,494 | 786 | 2,028 |
| Adjusted EBITDA margin | 12.4% | 6.4% | 14.5% |
| Adjusted net profit | 983 | 73 | 725 |
| Recurring net profit | 1,330 | 702 | 2,165 |
| Recurring net profit margin | 11.0% | 5.7% | 15.5% |
Revenues
The following table presents components of the Metals segment’s sales data (before intersegmental elimination) for the years indicated.
| USD mn | Year ended 31 December | ||
|---|---|---|---|
| 2024 | 2023 | 2022 | |
| Sales of primary aluminium and alloys | |||
| Revenue, USD mn | 9,726 | 10,129 | 11,593 |
| Sales volumes, kt | 3,859 | 4,153 | 3,896 |
| Average sales price (USD/t) | 2,520 | 2,439 | 2,976 |
| Sales of alumina | |||
| Revenue, USD mn | 453 | 340 | 550 |
| Sales volumes, kt | 888 | 759 | 1,169 |
| Average sales price (USD/t) | 510 | 448 | 470 |
| Sales of foil and other aluminium products, USD mn | 585 | 550 | 581 |
| Other revenue, USD mn | 1,318 | 1,194 | 1,250 |
| Total revenues | 12,082 | 12,213 | 13,974 |
In 2024, the Metals segment’s revenue decreased by USD 131 million, or 1.1%, to USD 12,082 million from USD 12,213 million in 2023.
Revenue from sales of primary aluminium and alloys was down by USD 403 million in 2024, or 4.0%, to USD 9,726 million from USD 10,129 million in 2023. This was primarily due to a 7.1% decrease in sales volumes between comparable periods, which was partially offset by a 3.3% increase in the weighted‑average realised aluminium price per tonne (to an average of USD 2,520 per tonne in 2024 from USD 2,439 per tonne in 2023), driven by an increase in the LME aluminium price (to an average of USD 2,419 per tonne in 2024 from USD 2,252 per tonne in 2023).
Revenue from sales of alumina rose by 33.2% from USD 340 million for the year ended 31 December 2023 to USD 453 million for the year ended 31 December 2024, mainly due to a 17.0% increase in sales volumes along with a 13.8% increase in the average alumina sales price.
Revenue from sales of foil and other aluminium products grew by USD 35 million, or 6.4%, in 2024 to USD 585 million compared to USD 550 million in 2023, which was mainly due to a 36.6% increase in revenue from the sale of aluminium wheels between comparable periods, partially offset by a 2.5% decrease in foil sales.
Other revenue, which includes sales of other products, bauxite, and electricity, was up 10.4% to USD 1,318 million for the year ended 31 December 2024 compared to USD 1,194 million for the previous year. The increase was driven by a 74.2% rise in revenue from bauxite sales, which was partially offset by lower revenues from sales of other materials (such as anode blocks down by 3.2%, aluminium powder by 6.8%, soda by 19.7%), and by a 7.4% decline in revenue from sales of services.
Cost of sales
The following table presents components of the Metals segment’s cost of sales for the years indicated.
| USD mn | Year ended 31 December | ||
|---|---|---|---|
| 2024 | 2023 | 2022 | |
| Cost of alumina | 2,168 | 2,029 | 1,847 |
| Cost of bauxite | 280 | 235 | 331 |
| Cost of other raw materials and other costs | 2,891 | 3,074 | 3,835 |
| Purchases of primary aluminium from joint ventures | 600 | 656 | 940 |
| Energy costs | 2,277 | 2,288 | 2,658 |
| Depreciation and amortisation | 508 | 513 | 481 |
| Personnel expenses | 732 | 667 | 781 |
| Repair and maintenance | 484 | 455 | 532 |
| Net change in provisions for inventories | (3) | (12) | 171 |
| Change in finished goods | (676) | 540 | (806) |
| Total cost of sales | 9,261 | 10,445 | 10,770 |
For the year ended 31 December 2024, the cost of sales of the Metals segment decreased by USD 1,184 million, or 11.3%, to USD 9,261 million compared to USD 10,445 million for the year ended 31 December 2023.
In 2024, the cost of alumina increased by USD 139 million, or 6.9%, to USD 2,168 million compared to USD 2,029 million in 2023, mainly due to a 24.0% increase in the purchase price of alumina between the compared periods, which was partially offset by a decrease in the volume of purchases.
The cost of raw materials (other than alumina and bauxite) and other costs decreased by 6.0% in 2024 compared to the same period in 2023 due to lower purchase prices for raw materials (raw pitch coke was down by 13.7%, pitch by 7.8%, anode blocks by 15.9%, and caustic soda by 8.9%).
Energy costs remained virtually unchanged in the compared periods, as the increase in the average electricity tariff was partially offset by fluctuations in the exchange rate of the Russian rouble.
Finished goods mainly consist of primary aluminium and alloys (approximately 97%). Changes between the reporting periods were driven by fluctuations in physical inventories of primary aluminium and alloys: a 48.8% increase in 2024 and a 27.7% decrease in 2023.
Adjusted EBITDA and adjusted EBITDA margin
In 2024, adjusted EBITDA of the Metals segment increased by USD 708 million, or 90.1%, from USD 786 million in 2023 to USD 1,494 million. Adjusted EBITDA margin was 12.4% in 2024 compared to 6.4% in 2023. The factors contributing to the growth in adjusted EBITDA margin were the same as those affecting operating performance.
The following table reconciles the Metals segment’s adjusted EBITDA to its results from operating activities for the periods indicated.
| USD mn | Year ended 31 December | ||
|---|---|---|---|
| 2024 | 2023 | 2022 | |
| Adjusted EBITDA reconciliation | |||
| Results from operating activities | 368 | (79) | 1,316 |
| Adjusted for: | |||
| 538 | 540 | 503 |
| 8 | 4 | 13 |
| 580 | 321 | 196 |
| Adjusted EBITDA | 1,494 | 786 | 2,028 |
The following table reconciles the Metals segment’s adjusted net profit and recurring net profit to its net profit for the periods indicated.
| USD mn | Year ended 31 December | ||
|---|---|---|---|
| 2024 | 2023 | 2022 | |
| Adjusted net profit reconciliation | |||
| Net profit for the period | 803 | 282 | 1,793 |
| Adjusted for: | |||
| (347) | (629) | (1,440) |
| (53) | 99 | 176 |
| 580 | 321 | 196 |
| Adjusted net profit | 983 | 73 | 725 |
| Added back: | |||
| 347 | 629 | 1,440 |
| Recurring net profit | 1,330 | 702 | 2,165 |
In 2024 and 2023, the Power segment accounted for 24.2% and 22.7% of the business segments’ revenues (before adjustments), respectively. As at 31 December 2024 and 31 December 2023, the assets of the Power segment represented 32.5% and 32.7% of the Group’s total assets (before adjustments), respectively.
| USD mn | For the year ended 31 December | ||
|---|---|---|---|
| 2024 | 2023 | 2022 | |
| Revenue | 3,853 | 3,587 | 3,885 |
| Gross profit | 1,638 | 1,444 | 1,463 |
| Gross profit margin | 42.5% | 40.3% | 37.7% |
| Results from operating activities (EBIT) | 1,149 | 1,027 | 849 |
| Operating profit margin | 29.8% | 28.6% | 21.9% |
| Pre‑tax profit | 722 | 550 | 619 |
| Profit for the year | 553 | 355 | 384 |
| Net profit margin | 14.4% | 9.9% | 9.9% |
| Adjusted EBITDA | 1,446 | 1,292 | 1,254 |
| Adjusted EBITDA margin | 37.5% | 36.0% | 32.3% |
Revenues
In 2024, the Power segment’s revenue grew by USD 266 million, or 7.4%, to USD 3,853 million from USD 3,587 million in 2023, resulting from higher average electricity prices and an average 6.5% increase in the volume of electricity generation.
For the reasons described above, revenue from electricity sales increased by 14.9% year‑on‑year to USD 1,975 million.
In 2024, revenue from capacity sales grew by 6.3% year‑on‑year to USD 603 million. The increase was mainly due to higher selling prices compared to 2023.
In 2024, revenue from heat sales decreased by 10.0% year‑on‑year to USD 385 million, reflecting a decline in heat supply in 2024 by 4.0% year‑on‑year due to weather conditions, with the average monthly temperature in 2024 being higher than in 2023 by an average of 1.0°C.
The Power segment’s electricity generation rose from 85.2 billion kWh in 2023 to 90.7 billion kWh in 2024. In 2023, HPPs produced 68.8 billion kWh of electricity, or 80.8% of the total electricity generated by the Power segment, while in 2024 they generated 73.7 billion kWh of electricity, or 81.3% of the total electricity generated by the Power segment. The increase in HPP generation can primarily be explained by an increase in water reserves.
The following table presents components of the Power segment’s sales data for the years indicated.
| USD mn | Year ended 31 December | ||
|---|---|---|---|
| 2024 | 2023 | 2022 | |
| Average RUB/USD rate | 92.57 | 85.25 | 68.55 |
| Sales of electricity | |||
| Revenue, USD mn | 1,975 | 1,719 | 1,861 |
| Sales volumes, TWh | 113.8 | 107.1 | 105.5 |
| Average sales price (RUB/MWh) | 1,607 | 1,368 | 1,209 |
| Sales of capacity | |||
| Revenue, USD mn | 603 | 567 | 598 |
| Sales volumes, GW/year | 163.2 | 162.5 | 163.3 |
| Average sales price (RUB ‘000/MW) | 342 | 297 | 251 |
| Sales of heat | |||
| Revenue, USD mn | 385 | 428 | 471 |
| Sales volumes, mn Gcal | 23.1 | 24.1 | 24.0 |
| Average sales price (RUB/Gcal) | 1,540 | 1,452 | 1,322 |
| Sales of semi‑finished products, USD mn | 315 | 309 | 341 |
| Other revenue, USD mn | 575 | 564 | 614 |
| Total, USD mn | 3,853 | 3,587 | 3,885 |
Cost of sales
The following table presents components of the Power segment’s cost of sales (before intersegmental elimination) for the years indicated.
| USD mn | Year ended 31 December | ||
|---|---|---|---|
| 2024 | 2023 | 2022 | |
| Electricity and capacity | 628 | 599 | 642 |
| Cost of materials | 454 | 450 | 564 |
| Personnel expenses | 416 | 416 | 503 |
| Depreciation and amortisation | 204 | 217 | 211 |
| Electricity transmission costs | 144 | 157 | 194 |
| Other | 369 | 304 | 308 |
| Total cost of sales | 2,215 | 2,143 | 2,422 |
In 2024, the cost of sales of the Power segment rose by USD 72 million, or 3.4%, to USD 2,215 million compared to USD 2,143 million in 2023. The growth was mainly due to an increase in purchased electricity and capacity costs, as well as an increase in the cost of services due to inflationary pressures.
Adjusted EBITDA and adjusted EBITDA margin
The following table presents the Power segment’s adjusted EBITDA and adjusted EBITDA margin for the years indicated.
| USD mn | Year ended 31 December | ||
|---|---|---|---|
| 2024 | 2023 | 2022 | |
| Adjusted EBITDA (HPP) | 1,384 | 1,142 | 1,257 |
| Adjusted EBITDA (CHP) | 34 | 60 | 42 |
| Adjusted EBITDA (other and unallocated items) | 28 | 90 | (45) |
| Adjusted EBITDA (Power segment) | 1,446 | 1,292 | 1,254 |
| Adjusted EBITDA margin (HPP) | 85.7% | 83.9% | 84.0% |
| Adjusted EBITDA margin (CHP) | 4.3% | 7.6% | 5.0% |
| Adjusted EBITDA margin (Power segment) | 37.5% | 36.0% | 32.3% |
In 2024, adjusted EBITDA of the Power segment increased by USD 154 million, or 11.9%, from USD 1,292 million in 2023 to USD 1,446 million. The trend was mainly due to the same factors that affected revenue growth.
The following table reconciles the Power segment’s adjusted EBITDA to its results from operating activities for the periods indicated.
| USD mn | Year ended 31 December | ||
|---|---|---|---|
| 2024 | 2023 | 2022 | |
| Results from operating activities | 1,149 | 1,027 | 849 |
| Adjusted for: | |||
| 217 | 228 | 221 |
| (1) | (8) | 10 |
| 81 | 45 | 174 |
| Adjusted EBITDA | 1,446 | 1,292 | 1,254 |
Contingencies
The summary of the Group’s principal contingencies is set out below. For a detailed discussion of the Group’s contingencies in 2024, including legal, environmental contingencies, environmental risks and considerations, see Note 22 of the Annual Financial Statements.
Taxation
Russian tax, currency and customs legislation is subject to varying interpretation and frequent changes. Management’s interpretation of such legislation, as applied to the Group’s transactions and activities, may be challenged by relevant local, regional, or federal authorities.
Notably, recent developments in the Russian legal landscape suggest that tax authorities in Russia are increasingly taking a tougher stand when interpreting or enforcing tax legislation, particularly in relation to the use of certain commercial and trade transaction structures which can be used by taxpayers but might be in conflict with the authorities’ earlier interpretations or practices. Recent events in the Russian Federation suggest that the tax authorities are taking a more assertive and substance‑based position in their interpretation and enforcement of tax legislation.
An estimate of the maximum possible additional amounts which may reasonably become payable in respect of the Group’s tax risks is disclosed in Note 22(a) of the Annual Financial Statements.
Legal contingencies
The Group’s business activities expose it to a variety of lawsuits and claims which are monitored, assessed, and contested on an ongoing basis. Where management believes that a lawsuit or another claim would result in an outflow of economic benefits for the Group, a best estimate of such outflow is included in provisions in the consolidated financial statements. The amount of claims where management assesses outflow as possible is disclosed in Note 22(с) of the Annual Financial Statements.
Going concern
The Group closely monitors and manages its funding position and liquidity risk throughout the year, including monitoring forecast results, to ensure that it has access to sufficient funds to meet forecast cash requirements. Cash forecasts are prepared on a regular basis, taking into account sensitivity analyses including, but not limited to, changes in electricity and aluminium prices, foreign exchange rates, production volumes and cost indicators. These forecasts and sensitivity analyses allow management to mitigate liquidity or covenant compliance risks in a timely manner. The situation in Ukraine, as well as volatility in commodity, stock, and FX markets and interest rates, create material uncertainty in the Group’s ability to meet its financial obligations on time and continue as a going concern entity. Management constantly evaluates the current situation and prepares forecasts taking into account different scenarios of events. The Group’s management expects that prices on the world commodity markets will grow and improve results from our operating activities. The Group is also redesigning its supply and sales chains, ensuring an optimal equity and debt ratio, searching for solutions to logistics issues, as well as ways to meet its obligations in order to adapt fast to the current economic changes to support the Group’s operations. For a detailed discussion of the Group’s going concern in 2024, see Note 1(e) of the Annual Financial Statements.
Report on mandatory payments to governments
The table below shows the amounts paid by the Group’s entities to public authorities (primarily in the form of miscellaneous taxes and levies) in connection with their extraction activities.
| Type of payment in 2024, USD ‘000 | Russia | Kazakhstan | Guinea | Guyana | Jamaica | Total |
|---|---|---|---|---|---|---|
| Production fees | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ |
| Taxes or levies on corporate sales, production, or profits | 47,490 | 19,106 | 15,253 | ‑ | 6,737 | 88,585 |
| Royalties | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ |
| Dividends | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ |
| Signing‑on, discovery and production bonuses | ‑ | ‑ | ‑ | ‑ | ‑ | ‑ |
| Licence fees, rental charges, entry fees, and other consideration for licences and/or concessions | 4,310 | 1,033 | ‑ | 157 | 140 | 5,640 |
| Infrastructure improvement payments | 4,086 | 313 | ‑ | ‑ | ‑ | 4,400 |
| Total | 55,887 | 20,452 | 15,253 | 157 | 6,877 | 98,625 |