Rates of metals on the world market endure a trade war

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Continue to watch the reporting of the largest companies in the country, this time pay attention to the “Norilsk Nickel”. PJSC “MMC “Norilsk Nickel” announced audited consolidated financial results under IFRS for the year 2017. Consolidated revenues of Norilsk Nickel increased by 11% year-on-year to 9.1 billion rubles, mainly due to the growth of prices of a basket of metals.
EBITDA rose 2% year-on-year to 4 billion mainly due to the increase in revenue from sales of metals that was compensated nemnogoe negative effects of the strengthening of the ruble, as well as one-time social costs and stockpiling of palladium to meet contractual obligations in 2018. EBITDA amounted to 44%, which remains one of the highest rates in the world mining and metallurgical industry. The ratio of net debt to EBITDA increased to 2.1 x as of the end of 2017, mainly due to the dividend distribution for the year 2016, as well as temporary increase in working capital.
These are published by the company, the financial results look quite optimistic. Calculations to estimate the size of dividends for the year 2017 show a slight decrease in dividend payout from 60% to 54% of EBITDA. The current dividend yield of the shares of Norilsk Nickel expected to commit at the end of the first half dividend “cutoff” can be assessed to within 5%. These results include difficulties in the U.S. market and an increase in protectionist measures against the products of “Norilsk Nickel”.
Alexander Grigorenko,
Asset Manager
IR Global Capital