Board of Directors of Norilsk Nickel recommended not to pay dividends for 2022
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The Board of Directors of Norilsk Nickel recommended to shareholders not pay dividends for 2022. Such a recommendation was given for a number of reasons, including because of the increased geopolitical risks that adversely affected the financial results of Norilsk Nickel. At the end of 2021, the councilor recommended pay final dividends in the amount of 1166.22 rubles. per ordinary share (about $15.55).
“Previous dividends (for 2021) were paid out of loan funds. Fulfillment of the obligation to pay dividends to shareholders led to a doubling of net debt from $4.9 billion at the end of 2021 to $9.8 billion at the end of 2022,”— calls Norilsk Nickel today, April 28, is one of the reasons for the likely refusal of dividends for 2022. The company also mentions a possible increase in sanctions pressure and a decrease in prices for a basket of metals due to a slowdown in the global economy.
“In 2022, the company faced a decline in revenue and an increase in costs. Traditional supply chains were destroyed, and investment projects required serious adjustments,” Nornickel reports.
At the end of 2022, Norilsk Nickel earned $437 million in free cash flow, which is 10 times less than a year earlier.
Read about the situation in the metallurgical industry in the publication of the application “Metallurgy” “Unreported Investments”.
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