Moscow — PJSC MMC Norilsk Nickel, the largest refined nickel and palladium producer in the world, today reports IFRS financial results for six months ended June 30, 2017.
- Consolidated revenue increased 11% y-o-y to USD 4.2 billion primarily owing to higher realized metal prices;
- EBITDA was down 3% y-o-y to USD 1.7 billion primarily owing to RUB appreciation against USD and one-off increase in social-related expenses. EBITDA margin maintained at an industry-leading level of 41%;
- CAPEX was almost flat y-o-y at USD 0.7 billion. Full year CAPEX guidance of USD 2 billion is reiterated;
- Net working capital increased to USD 0.8 billion driven mostly by the payment to Rostec for the purchase of copper concentrate;
- Free cash flow decreased 17% y-o-y to USD 0.5 billion primarily due to the increase of working capital resulting in FCF/revenue ratio of 12%;
- Net debt/EBITDA ratio increased to 1.5x as of June 30, 2017 driven mostly by the payment of interim dividend for 9 months of 2016 in January 2017 in the amount of USD 1.2 billion and the increase of working capital;
- In 2Q2017, taking the advantage of favourable market conditions the Company placed two Eurobond issues: USD 1 billion with an annual coupon rate of 4.1% and USD 0.5 billion with an annual coupon rate of 3.85%.The coupon was fixed at the record low level for the Company’s issuances on international debt capital markets.
- On 24 January 2017, the Company’s Board of Directors approved the sale of up to 39.32% stake in the Bystrinskiy (Chita) Project to CIS Natural Resources Fund. The closing of the transaction is expected by the year-end 2017.