Nornickel earnings fall in 2016
Russia’s Norilsk-Nickel, or simply Nornickel like the company now names itself, on Wednesday posted its 2016 financial results.
President, and main shareholder of Nornickel, Vladimir Potanin commented on the results:
«The last year marked was very challenging for the commodity industry as many metal prices touched their multi-year lows, while further exhibiting extreme volatility alongside exchange rates. This unavoidably affected our company’s financial results.»
Nickel price was last year like a rollercoaster, first falling to its 12-year low of $7,710 per ton sharply rising to $9,400 in June and peaking above $11,700 per ton in November.
Nornickel is the world’s largest producer of nickel and the largest industrial company on Russia’s Kola Peninsula with mines, processing plants and smelters in Zapolyarny, Nikel and Monchegorsk. For Murmansk Oblast, the company is also the single-most important taxpayer.
The company runs smelters in Norilsk and mines in Talnakh on the Taymyr Peninsula in Siberia.
Although revenue decreased 3 percent compared with 2015 to $8,3 billion and earnings were down 9 percent to $3,9 billion, the company’s net profit rose 47 percent to $2,5 billion.
The main reason for such high profit in times of lower income is mainly due to the aprreciation of the rouble currency, Nornickel writes in a press-summary.
In addition to nickel, the company produces copper, palladium and platinum.