Nornickel少卖网卡kel And Palladium in The First Half Due To Supply Chain Disruptions

Russian metals producer Nornickel said on Tuesday its nickel, palladium and platinum sales fell in the first half of 2022 due to supply chain disruptions, while net profit rose 18 percent to $5.1 billion due to a stronger ruble.

Nornickel, the world's largest producer of palladium and high-grade nickel, has not been directly targeted by Western sanctions against Moscow, but it has faced problems with logistics and supplies of imported equipment.

"The imposition of voluntary sanctions on a number of international suppliers of equipment, spare parts, materials and technology poses a serious challenge to the execution of our strategic investment plan," said Vladimir Potanin, Nornickel's chief executive and largest shareholder.

"We are doing our best to mitigate their negative impact, but we do see a risk that some of our strategic projects will have to be postponed," he added.

The miner said its January-June earnings before interest, tax, depreciation and amortisation (EBITDA) fell 16 per cent to $4.8bn, while revenue was flat at $9bn, as higher production and higher base metal prices were offset by lower palladium prices.

Nornickel's nickel sales fell 6 percent in the first half, palladium 4 percent and platinum 18 percent, but copper sales rose 22 percent.

Nornickel said first-half capital expenditures rose 83 percent to $1.8 billion, while net debt doubled to $10.2 billion due to lower free cash flow and dividend payments totaling $6.2 billion in 2021.

The miner now expects the surplus in the global nickel market -- mainly low-grade nickel -- to reach 75,000 tonnes in 2022 before rising to 150,000 tonnes in 2023.

Nornickel added that the global palladium market is expected to remain balanced this year due to a recovery in the auto sector.