Norilsk Nickel Sees First-Half Profit Falling as Much as a Third

OAO GMK Norilsk Nickel, the world’s largest miner of the metal, expects first-half profit to decline by as much as a third after average prices of the metal dropped, according to Chief Executive Officer Vladimir Strzhalkovsky.

Norilsk sees earnings before interest, taxes, depreciation and amortization of at least $2.5 billion, Strzhalkovsky said today in an interview in Sochi, southern Russia. Norilsk said in October its Ebitda in the first half of 2011 was $3.74 billion.

Sales are expected to be about $6 billion and net income may be $1.5 billion, he said. That compares with $7.3 billion in revenue and $1.8 billion in profit last year.

Average nickel prices in London tumbled by 28 percent to $18,501 a metric ton in the first half from a year earlier.

To contact the reporter on this story: Stepan Kravchenko in Sochi at skravchenko@bloomberg.net;

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net

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