Norilsk Nickel’s net profit under IFRS in 2023 decreased by half – Kommersant

Norilsk Nickel’s net profit under IFRS in 2023 decreased by half – Kommersant

Norilsk Nickel’s net profit (MOEX: GMKN) at the end of 2023 amounted to $2.87 billion, follows from the financial statements of the mining and metallurgical company according to IFRS (.pdf). Compared to the results of 2022 – $5.85 billion – the figure decreased by 51%.

At the end of last year, Norilsk Nickel’s consolidated revenue decreased by 15% compared to 2022 and amounted to $14.4 billion. The company explained the drop in performance by a decrease in selling prices for nickel, palladium, rhodium and copper. At the end of 2023, Norilsk Nickel’s EBITDA decreased by 21% year-on-year to $6.9 billion due to a decrease in revenue, while the EBITDA margin was 48%.

Due to the weakening of the ruble and the cessation of purchases of metals for resale, the company’s cash operating costs decreased by 19% and amounted to $5.3 billion. The volume of capital investments decreased by 29%, to $3 billion. Net working capital amounted to $3.1 billion (-23%) , net debt – $8.1 billion (-18%).

Commenting on the financial results, Norilsk Nickel President Vladimir Potanin noted that the performance was affected by “continuing foreign policy pressure on Russian business” and lower metal prices. “Nevertheless, the company managed to fully fulfill the production plan for last year and sell the entire volume of metals produced, redirecting sales flows to friendly countries. In turn, effective cost control supported by the dynamics of the ruble exchange rate made it possible to reduce cash costs and maintain EBITDA margin at a high level,” Mr. Potanin is quoted as saying in the report.

Norilsk Nickel is the world’s largest producer of palladium (44% of global production) and nickel (13%). The company is also involved in the mining, processing and marketing of silver, gold, cobalt and other metals. Norilsk Nickel’s net profit under IFRS in 2022 decreased by 16%, to $5.9 billion. EBITDA for 2022 fell by 17%, to $8.7 billion, consolidated revenue decreased by 5%, to $16.9 billion.

Read more about the company’s business in the Kommersant publication. “Norilsk Nickel will not rust”.

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