DGAP-News: MMC Norilsk Nickel: MMC NORILSK NICKEL REPORTS FIRST HALF 2013 UNAUDITED INTERIM CONSOLIDATED IFRS FINANCIAL RESULTS
(firmenpresse) - 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 ChangeOUTLOOK
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/EBITDA1.1x 0.8x n/a
Capital expenditures 884 1,115 (20.7%)
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(at)nornik.ru
Investor Relations: Phone: +7 (495) 786 83 20 Email: ir(at)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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Language: EnglishCompany: 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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