Net profit of Norilsk Nickel under IFRS for the first half of the year increased by 18%

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AK&M 03 August 2022 10:30

Norilsk Nickel's net profit under IFRS for the first half of 2022 increased by 18% and amounted to $5.1 billion compared to a year earlier. The growth was primarily due to the significant strengthening of the ruble exchange rate at the end of the reporting period and, as a result, the revaluation of debt obligations in foreign currency. This is stated in the company's message.

Consolidated revenue amounted to $9 billion, almost unchanged compared to the same period last year. At the same time, the effect of a higher price for non-ferrous metals, as well as an increase in production caused by the elimination of the consequences of accidents at the Oktyabrsky and Taimyrsky mines and the Norilsk concentrator, was offset by a decrease in the price of palladium and a decrease in sales volumes due to disruption of logistics chains in 2022 and the sale of metals from the remainder in in 2021;

EBITDA decreased by 16% to $4.8 billion due to an increase in cost, caused primarily by an increase in personnel costs and an increase in MET. The EBITDA margin was 53%.

PJSC MMC Norilsk Nickel (TIN 8401005730) is Russia's largest diversified mining and metallurgical company, is the world's largest producer of nickel and palladium and one of the world's largest producers of platinum, rhodium, copper and cobalt. In addition, the company produces a large number of related metals, including gold, silver, tellurium, selenium, iridium and ruthenium. The production units of MMC Norilsk Nickel Group are located in the Norilsk Industrial District and on the Kola Peninsula, as well as in Finland, the USA, Australia, Botswana and South Africa.

Norilsk Nickel's net profit under IFRS for 2021 increased by 92% to $6.97 billion from $3.6 billion a year earlier. Revenue increased by 15% to $17.85 billion from $15.5 billion. EBITDA increased by 37% to $10.5 billion from $7.65 billion.