EBITDA margin was 53 percent. Net profit increased by 18 percent and amounted to $5.1 billion, primarily due to a significant strengthening of the ruble exchange rate and, as a result, revaluation of debt obligations in foreign currency.
Capital expenditures increased 83 percent to $1.8 billion driven by planned increases in investment in key environmental and mining projects, as well as capitalized repairs aimed at improving industrial safety and reducing physical risks.
“Net working capital rose to $3.8 billion, mainly due to the ruble significant strengthening, an increase in inventories of metal products, materials and spare parts, as well as the amortization of advances from buyers and a reduction in factoring services”, Nornickel said.
Net debt doubled to $10.2 billion due to lower free cash flow and a 2021 dividend payment totaling about $6.2 billion. The company continues to fulfill its debt obligations in full.
In order to minimize restrictive economic measures introduced by a number of countries, Nornickel has developed appropriate measures and organized work to replace imports of necessary goods and services with alternative suppliers.
Previously, the company was among the first in Russia to hold its own forum on import substitution, which brought together domestic manufacturers. Representatives of more than 100 companies gathered in Norilsk.
Text: Anzhelika Stepanova, Photo: Nikolay Shchipko