Norilsk Nickel net profit up 92% in 2021

PJSC Norilsk Nickel the world’s largest palladium and high-grade nickel and a major producer of platinum and copper, reported audited consolidated IFRS financial results for the full year ended December 31, 2021. The company's net profit grew by 92%, to $7 billion, compared to last year, according to a press release from Norilsk Nickel.
EBITDA increased 37% y-o-y to USD 10.5 billion while EBITDA margin amounted to 59%.
At the same time social expenses doubled to just over USD 1 billion mostly as result of provisions related to the agreements on social and economic development of the city of Norilsk and the Krasnoyarsk region.
CAPEX increased 57% y-o-y to a record USD 2.8 billion driven by growth of investments into key strategic projects. Net debt was almost flat y-o-y at USD 4.9 billion with net debt/EBITDA ratio of 0.5x as of December 31, 2021.
In October 2021, the Company successfully placed a 5-year USD 500 mln Eurobond with a coupon rate of 2.80% marking the lowest ever spread to the benchmark in the history of Nornickel’s public offerings.
On December 27, 2021, EGM approved the interim dividend for the 9 months of 2021 in the amount of RUB 1,523.17 per ordinary share for the total amount of RUB 232.84 bn.
The President of Nornickel, Vladimir Potanin, noted that the consumption of Norilsk Nickel products grew rapidly in 2021 due to the recovery of the global economy after the crisis caused by the coronavirus pandemic. «In 2021, Nornickel delivered strong financial performance. Revenue was up 15% y-o-y to USD 17.9 billion driven by higher metal prices and sales of palladium from earlier accumulated stocks,» he said.

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