Norilsk Nickel increased profits and increased debts in 2022

The revenue of MMC Norilsk Nickel Vladimir Potanin under IFRS for the first half of 2022 amounted to $9 billion, practically unchanged from last year. This was reported in the company’s report, published on August 2. Norilsk Nickel was the first of the largest Russian non-ferrous metallurgy companies to publish its financial results for the first half of the year.

The report notes that the effect of rising prices for base metals, as well as the increase in the company’s production in January-June, were offset by a fall in palladium prices and a decrease in sales volumes due to supply chain disruption. Norilsk Nickel’s EBITDA fell by 16% to $4.8 billion in six months on the back of rising production costs caused by additional staff costs and an increase in mineral extraction tax (MET). At the same time, net profit increased by 18% year-on-year to $5.1 billion due to the strengthening of the ruble and the revaluation of debt obligations in foreign currency, the company said. Norilsk Nickel’s net debt doubled to $10bn due to a reduction in FCF (free cash flow) and the payment of dividends for 2021 totaling $6.2bn. The net debt/EBITDA ratio was a comfortable 1.1.