Norilsk Nickel announced an increase in the time and cost of cargo delivery

Norilsk Nickel announced an increase in the time and cost of cargo delivery

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Delivery times for Norilsk Nickel products (MOEX: GMKN) increased two to three times due to the refusal of European transport companies to work with Russian counterparties. This was stated by the company’s vice president for sales and distribution, Anton Berlin. Delivery costs have also increased, he noted.

“Delivery has increased two to three times. It’s a little easier with precious metals; they fly by plane, so days count there. Deliveries by sea, especially to Asia, are sensitive because the ship takes more than two months to reach China. The Northern Sea Route is not yet so accessible, and we are sailing around,” Mr. Berlin said in an interview on the YouTube channel “Popular Investments”.

In the first half of the year, Norilsk Nickel sharply reoriented sales to Asia; for the first time in history, the region became the company’s largest market. At the same time, according to the company’s reporting under IFRS, the fall in metal prices led to a reduction in the company’s revenue by 20%, to $7.2 billion, and the exchange rate difference brought down net profit fivefold, to $1.1 billion.

Read more about the company’s financial results in the Kommersant material. “”Norilsk Nickel” dropped profit”.

Lusine Balasyan

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