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DGAP-News: MMC Norilsk Nickel: MMC NORILSK NICKEL REPORTS FIRST HALF 2013 UNAUDITED INTERIM CONSOLIDATED IFRS FINANCIAL RESULTS



DGAP-News: MMC Norilsk Nickel: MMC NORILSK NICKEL REPORTS FIRST HALF 2013 
UNAUDITED INTERIM CONSOLIDATED IFRS FINANCIAL RESULTS

EquityStory.RS, LLC-News: MMC Norilsk Nickel / Key word(s): Half Year
Results
MMC Norilsk Nickel: MMC NORILSK NICKEL REPORTS FIRST HALF 2013
UNAUDITED INTERIM CONSOLIDATED IFRS FINANCIAL RESULTS

29.08.2013 / 16:39

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MMC NORILSK NICKEL REPORTS FIRST HALF 2013 UNAUDITED INTERIM CONSOLIDATED
IFRS FINANCIAL RESULTS

Moscow, August 29, 2013 - OJSC MMC Norilsk Nickel ('MMC Norilsk Nickel',
the 'Company' or the 'Group'), the largest nickel and palladium producer in
the world, today reports unaudited financial results for the six months
ended June 30, 2013.

1H 2013 HIGHLIGHTS

  - Robust financial results despite turbulent macro environment and
    weakening commodity prices.

  - Revenue amounted to USD 5.6 billion, down 6.1% y-o-y owing to weak
    metal prices and lower sales volumes of nickel and platinum.

  - EBITDA decreased 7.8% y-o-y to USD 2.3 billion driven by lower metals
    revenue, which was partially off-set by improved sales and distribution
    performance and a substantial decrease in SG&A.

  - EBITDA margin demonstrated resilience reaching 41% (vs 42% in 1H 2012)
    due to effective cost controls.

  - Net profit of USD 545 million was down 63% y-o-y owing to USD 636
    million of non-cash write-offs; net profit, excluding non-cash
    write-offs, amounted to USD1.2 billion and was down 21%.

  - Despite substantial revenue contraction net cash flow from operating
    activities of USD 1.6 billion was practically unchanged y-o-y owing to
    better management of working capital.

  - CAPEX decreased by 21% y-o-y to USD 0.9 billion as the management
    adopted more stringent capital allocation discipline, with expected
    mandatory CAPEX savings of at least USD 300 million for the full year
    2013.

  - Annual dividends for 2012 were paid in the amount of RUB 400.8
    (approximately USD 12.9) per ordinary share underlying the Company's
    commitment to shareholder returns.

  - The restructuring of the corporate head office was launched aiming to
    bring management practices in line with global industry standards and a
    new management team was appointed.

  - Strategic review on non-core businesses and selected international
    assets was launched.

RECENT DEVELOPMENTS

  - On August13, 2013 the Company reduced its share capital by 8.08%
    through cancellation of 13,911,346 treasury shares, thus fully
    completing the redemption of treasury stock announced in December 2012.

KEY HIGHLIGHTS



USD million unless stated otherwise              1H2013    1H2012    Change
                                                                      y-o-y
Revenue                                           5,565     5,929    (6.1%)
Gross profit                                      2,432     2,875   (15.4%)
EBITDA                                            2,299     2,494    (7.8%)
EBITDA Margin                                       41%       42%  (1 p.p.)
Net profit                                          545     1,481   (63.2%)
Net profit adjusted for impairment of             1,181     1,497   (21.1%)
financial and non-financial assets
Net cash from operating activities                1,615     1,658    (2.6%)
Net debt                                          5,065     3,986     27.1%
Net debt/EBITDA                                    1.1x      0.8x       n/a
Capital expenditures                                884     1,115   (20.7%)




OUTLOOK
We expect the global macro uncertainty to persist in 2H13, but note a
stabilization of the economic growth in China and some early signs of the
economic recovery in the developed world. We believe that nickel price is
bottoming out, but a price recovery to be capped by market surplus. We
expect platinum and palladium to remain in deficit owing to supply issues
of mined material and a low volume of metal coming from inventory, with the
discount of palladium to platinum reducing further. The company is
currently running a comprehensive strategy review, the results of which we
plan to reveal to the public in 4Q 2013.

Commenting on the results Chief Executive Officer of the Company Vladimir
Potanin said, 'These are the first results of the new management team and
while these are the early signs, I am pleased to see that the Company
delivered a strong a resilient performance against the backdrop of
unfavourable market conditions. By implementing a range of optimization and
fixed costs reduction measures we achieved a six-month EBITDA of USD2.3
billion - thus recording the industry-leading margin of 41%, almost at the
same level as in a prior year, despite a material decline in our revenue
base.
The focus for us for the coming months will be on finalizing our new
strategy, which will be presented to the investment community in the fourth
quarter this year. The new strategy of Norilsk will be built around
unleashing the full commercial potential of our unique resource base in
Taimyr and taking the Company's capital discipline and return-based
investment governance to and beyond the level of the global peer group.  We
are pleased to see that our new initiatives on capital allocation have
already allowed the Company to reduce its like-for-like capital
expenditures in the first half of 2013 by c. USD 200-300 million without
sacrificing the scope or the commercial results of our investment projects.
Although our current performance is strong, we remain wary of the continued
macroeconomic uncertainty and downward price pressure on our core metals. 
In these challenging conditions, we believe that this is utmostly important
to reiterate our commitment to shareholder value, strict capital discipline
and continued optimization of our cost structure.'

Full version: http://www.nornik.ru/_upload/editor_files/file2209.pdf 

For further information, please, contact:
Media Relations: Phone: +7 (495) 797 82 94 Email: pr@nornik.ru 
Investor Relations: Phone: +7 (495) 786 83 20 Email: ir@nornik.ru

ABOUT MMC NORILSK NICKEL:
MMC Norilsk Nickel, a company incorporated under the laws of the Russian
Federation, is the largest diversified mining and metals company in Russia,
the world's largest producer of nickel and palladium and one of the world's
largest producers of platinum, rhodium, copper and cobalt. In addition to
this, MMC Norilsk Nickel produces a large number of other by-products,
including gold, silver, tellurium, selenium, iridium and ruthenium.
The key production units of the Company's group in Russia are at the Polar
and Kola Peninsulas. MMC Norilsk Nickel international assets include
operations in Finland, Australia, Botswana and South Africa.
MMC Norilsk Nickel's shares are traded on the Moscow Exchange. ADR's on the
Company's shares are traded on the other the counter market in the US and
on the London and Berlin stock exchanges.


End of Corporate News

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29.08.2013 Dissemination of a Corporate News, transmitted by
EquityStory.RS, LLC - a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

EquityStory.RS, LLC's Distribution Services include Regulatory
Announcements, Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language:    English               
Company:     MMC Norilsk Nickel    
             22, Voznesensky Per.  
             125993 Moscow         
             Russia                
Internet:    www.nornik.ru         
ISIN:        US46626D1081          
WKN:         676683                
 
 
End of News    EquityStory.RS, LLC News-Service  
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228189 29.08.2013                                                      
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