Moscow — PJSC MMC Norilsk Nickel, one of the largest refined nickel and palladium producer in the world, today reports interim IFRS financial results for six months ended June 30, 2018.
1H2018 HIGHLIGHTS
- Consolidated revenue increased 37% y-o-y to USD 5.8 billion on the back of higher realized metal prices, growth in copper and PGMs production volumes and sales of palladium from earlier accumulated stocks;
- EBITDA increased 77% y-o-y to USD 3.1 billion driven by higher metal revenue and operational efficiency gains;
- EBITDA margin increased from 41% to 53%, reaching one of the highest levels in the global metals and mining industry;
- CAPEX was down 25% y-o-y to USD 0.5 billion following the completion of active construction phase of Bystrinsky (Chita) project, completion of the modernization of Talnakh Concentrator and a number of energy infrastructure projects in 2017;
- Net working capital reduced 20% (or USD 430 mln) to USD 1.7 billion mostly owing to the sale of palladium from stock accumulated in 2017 and optimization of capital structure;
- Free cash flow increased more than
5-fold to USD 2.6 billion; - Net debt/EBITDA ratio almost halved to 1.1x as of 30 June 2018;
- In January 2018, Moody’s rating agency raised Nornickel credit rating to the investment grade level, “Baa3”, and changed the outlook from “Stable” to “Positive”. As result, Nornickel is currently assigned investment grade credit ratings by all three major international rating agencies, Fitch, Moody’s and S&P Global.
- The Company paid final dividend for the full year 2017 of RUB 607.98 (approximately USD 9.63) per share for the total amount of about USD 1.5 billion