PJSC MMC Norilsk Nickel, the largest refined nickel and palladium producer in the world, reports IFRS financial results for six months ended June 30, 2017.
Consolidated revenue increased by 11% YoY, to $4.2 billion primarily owing to higher realized metal prices.
EBITDA dropped by 3%, $1.7 billion primarily owing to RUB appreciation against USD and one-off increase in social-related expenses. EBITDA margin was maintained at an industry-leading level of 41%.
CAPEX was almost flat YoY at $0.7 billion. Full year CAPEX guidance of $2 billion is reiterated.
Net working capital increased to $0.8 billion driven mostly by the payment to Rostec for the purchase of copper concentrate.
Free cash flow decreased by 17%, to $0.5 billion primarily due to the increase of working capital resulting in FCF/revenue ratio of 12%.
Net debt/EBITDA ratio increased to 1.5x as of June 30 driven mostly by the payment of interim dividend for 9 months of 2016 in January in the amount of $1.2 billion and the increase of working capital.
In Q2 taking the advantage of favorable market conditions the company placed two Eurobond issues: $1 billion with an annual coupon rate of 4.1% and $0.5 billion with an annual coupon rate of 3.85%. The coupon was fixed at the record low level for the company’s issuances on international debt capital markets.
On January 24, the company’s Board of Directors approved the sale of up to 39.32% stake in the Bystrinskiy (Chita) Project to CIS Natural Resources Fund. The closing of the transaction is expected by the year-end. (Nornickel/Ukrainian metal)