Norilsk Nickel has published interim consolidated financial results according to international financial reporting standards for the first half of 2023. The company's consolidated revenue amounted to $7.2 billion, which is 20% less compared to the same period last year. The reason for this was a decrease in exchange rates for all key metals, while the physical sales volumes of platinum group metals and gold increased, the press service of Norilsk Nickel reports.
For the first time in the company's history, the Asian region became its main market and accounted for almost half of the revenue from the sale of metals.
Due to the reduction in revenue, EBITDA decreased by 30% year-on-year and amounted to $3.4 billion. At the same time, the EBITDA margin remained at a high level – 47%.
Cash operating costs decreased by 12% compared to 2022 – now they amount to $2.7 billion. This was made possible mainly due to the fact that the company focused on increasing operational efficiency, which allowed minimizing inflationary pressure on costs, although the cost of repairs necessary to improve industrial safety increased.
The volume of capital investments decreased by 19% year–on-year to $1.5 billion as a result of optimization of settlements with contractors and revision of schedules of investment projects, which in turn was the result of voluntary sanctions on the supply of imported equipment and technologies, which led to their redesign.
The net working capital of Norilsk Nickel decreased by 20% this year and amounted to $3.2 billion, mainly due to the weakening of the ruble exchange rate and a decrease in accounts receivable.
The company's net debt decreased by 8% to $9.1 billion. At the same time, the ratio of net debt to EBITDA from the beginning of the year as of June 30, 2023 increased slightly to 1.2.
"The Company continued to optimize its debt portfolio, adapting to changes in the debt market and financing conditions, successfully placing five–year ruble bonds totaling 60 billion rubles in May this year," the press service of Norilsk Nickel said.
Alex Shishlo for Rough&Polished
