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 11% y-o-y to USD 4.2 billion primarily owing to higher realized metal prices;
- EBITDA was down 3% y-o-y to USD 1.7 billion primarily owing to RUB appreciation against USD and one-off increase in social-related expenses. EBITDA margin maintained at an industry-leading level of 41%;
- CAPEX was almost flat y-o-y at USD 0.7 billion. Full year CAPEX guidance of USD 2 billion is reiterated;
- Net working capital increased to USD 0.8 billion driven mostly by the payment to Rostec for the purchase of copper concentrate;
- Free cash flow decreased 17% y-o-y to USD 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, 2017 driven mostly by the payment of interim dividend for 9 months of 2016 in January 2017 in the amount of USD 1.2 billion and the increase of working capital;
- In 2Q2017, taking the advantage of favourable market conditions the Company placed two Eurobond issues: USD 1 billion with an annual coupon rate of 4.1% and USD 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 24 January 2017, 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 2017.
- In July 2017, the Company paid final dividend for 2016 in the amount of USD1.2 billion (or USD7.5 per share);
- In July 2017, the Group’s subsidiary Bystrinskoye LLC signed an amendment to the credit facility agreement with Sberbank, whereby PJSC MMC Norilsk Nickel provided guarantee for the full amount of the loan limit of USD 800 million thus enabling a material reduction of the interest rate and improvement of non-financial terms of the agreement.