Norilsk Nickel charges off $1 billion and is ready to pay large dividends
The new management of Norilsk Nickel changed the company’s accounting policy and charged off about $1 billion, having created more favourable basis for further dynamics of the indices. At the same time, in 2012 the net profit of Norilsk Nickel proved to be much lower than forecasted, however other results were as the market expected, thus the company can pay its shareholders at least $2 billion of dividends, as it is presupposed by the amicable settlement agreement. The company will most likely have to attract money to pay $7 billion more by 2015 and analysts see no problem in it.
On Friday Norilsk Nickel published the consolidated financial results for 2012. The company’s proceeds reduced by 15% and made up $12 billion, EBIDTA – by 32% - to $4.93 billion, EBIDTA margin made up 41% (-10%), the net profit reduced by 41% - to $2.14 billion (the consensus forecast of Interfax is $2.94 billion), however the company explains it by non-financial charging off at the amount of $975 million. First of all it is conditioned by reduction of the market value of the company’s 11% of Inter RAO and other securities - $525 million. Besides, reduction of metal concentration in the ore of Norilsk Nickel assets in Australia and Botswana resulted in their depreciation by $151 million and $110 million respectively; it is said in the report that in 2013 conservation of the pits in these countries is expected. Reduction of the proceeds is conditioned by the market conjuncture, i.e. nickel prices (47% of the proceeds) reduced by 23% in 2012, copper prices (26%) and palladium prices (16%) – by 13%.
