Moscow — PJSC MMC Norilsk Nickel, the largest refined nickel and palladium producer in the world, reports today IFRS financial results for the full year ended December 31, 2018.
- Consolidated revenue increased 28% y-o-y to USD 11.7 billion on the back of improved metal prices, higher copper output and sale of palladium from earlier accumulated stocks;
- EBITDA expanded 56% y-o-y to USD 6.2 billion owing to higher metal revenue, ramp-up of the Bystrinsky project and lower operating expenses driven by efficiency gains;
- EBITDA margin reached 53%, a leading level among the global diversified metals and mining majors;
- CAPEX decreased 22% y-o-y to USD 1.6 billion driven by completion of Bystrinsky project and downstream reconfiguration as well as optimization of investment schedules;
- Net working capital decreased by almost USD 1.3 billion to USD 0.9 billion as a result of palladium destocking and optimization of capital structure;
- Free cash flow increased to USD 4.9 billion;
- Net debt/EBITDA ratio returned to 1.1x as of the end of 2018;
- Cash interest paid decreased 14% to USD 551 million owing to optimization of debt portfolio despite rising market interest rates;
- In October 2018, the Company paid interim dividend for 1H2018 in the amount of RUB 776 (approximately USD 11.65) per ordinary share for the total amount of approximately USD 1.8 billion;
- 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 got assigned investment grade credit ratings by all three major international rating agencies, including Fitch and S&P Global.