Russian Metals Major Saw Profits Plummeting in 2024

SEATTLE (Scrap Monster):  Russian metals major Norilsk Nickel reported huge decline in net profits during the previous year.

In 2024, the company's net income fell 37% year over year to $1.8 billion, according to a news release. At $5.2 billion, the EBITDA was a dramatic 25% decrease. The EBITDA margin dropped to 41 percent. Revenues in 2024 were $12.5 billion, a 13% decrease from the year before. Lower market pricing of nickel and platinum group metals were cited by the corporation as the reason for the significant decline in top-line statistics.

In light of this, the management has chosen not to suggest to the board that dividends be paid in 2024. The business has made the decision to hold off on paying dividends until it achieves positive free cash flow. It should be mentioned that in 2024, free cash flow saw a steep 31% decrease to $1.9 billion. The board had suggested earlier in May 2024 that no final dividend be paid for 2023.

The net debt rose to $8.6 billion, a 6% increase from the year before. As of December 31, 2024, the ratio of net debt to EBITDA was 1.7 times.

In 2024, Nornickel produced 0.2 million tons of nickel, a slight decrease of 2% from the year before. At the same time, its production of platinum, palladium, and copper increased. Compared to 2024, the business anticipates an almost flat output in 2025.

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