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MOSCOW, Feb 10 (Reuters) - Russian mining giant
Nornickel said on Friday its earnings before interest,
tax, depreciation and amortisation (EBITDA) fell 17%
year-on-year in 2022 to $8.7 billion, as it grappled with a drop
in sales and supply chain disruption.
Nornickel is the world's largest producer of palladium and
refined nickel. While it has not been directly targeted by
Western sanctions over the conflict in Ukraine, it has faced
problems importing equipment and transporting goods abroad.
The company said its net profit fell 16% year-on-year in
2022 to $5.9 billion, while net debt doubled to $9.8 billion.
"Economic restrictions imposed on Russia by a group of
countries pose risks for operating, commercial and investment
activities of the company," it said.
"To mitigate these risks Nornickel is developing
relationships with alternative clients and suppliers, setting up
new logistic routes and exploring new capital markets."
Its boss and largest shareholder, Vladimir Potanin, said in
an interview last month the company was establishing deeper ties
with countries such as China as trading with Western markets
becomes more difficult.
While Potanin himself was sanctioned by the United States
last year, Western countries have been hesitant to sanction
Nornickel directly for fear of disrupting markets.
The company said in January it expected nickel and palladium
output to fall in 2023 as it carries out maintenance work, but
that it expected to sell all the metal it produces this year,
perhaps with China buying a slightly larger share.
It said it expected a surplus of 120,000 tonnes in the
nickel market in 2023 and a palladium deficit of 0.3 million
ounces.
"In the current environment there is a natural reallocation
of volumes to the Asian region and partly to the domestic
market, but it is premature to talk about a shift to Asia in
general," Chief Financial Officer Sergey Malyshev said.
"Contracts with the majority of customers, including large
ones, have been extended to 2023," he added.
(Reporting by Anastasia Lyrchikova and Caleb Davis,
Editing by Mark Potter)
