Norilsk Nickel’s board of directors by a majority vote issued a recommendation to not pay final dividends for 2023 due to the geopolitical situation and concerns over increasing the debt. The final decision will be made at the annual general meeting of shareholders.
The company noted that in 2023, sanctions and geopolitical challenges significantly impacted Nornickel’s financials. Revenue declined by 15% y-o-y to $14.4 billion, while free cash flow adjusted for interest, lease liabilities, and dividends to holders of non-controlling interests, came in at $1.3 billion.
Dividend payment by increasing debt levels is considered non-expedient. According to Nornickel’s current dividend policy, the cyclic nature of the metals market, as well as the need to keep a high level of the company’s creditworthiness, shall be taken into account when determining the dividend amount.
Meanwhile, Nornickel has already paid $1.5 billion in interim dividends for 9M 2023. The annual general meeting of shareholders of the company, at which the final decision will be made both on dividends and on a number of other issues, will be held on June 28, 2024.
Theodor Lisovoy, Editor in Chief, Rough&Polished
