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Russia’s Nornickel 2016 core earnings seen down 14 pct

Chief Operating Officer of Norilsk Nickel Sergey Dyachenko attends Reuters Russia Investment Summit in MoscowMOSCOW, – Russia’s Norilsk Nickel (Nornickel), the world’s second-largest nickel producer, is expected to post a 14 percent fall in full-year core earnings hit by lower nickel price, a Reuters poll of six banks and brokerages showed. Nornickel’s full-year earnings before interest, taxation, depreciation and amortisation (EBITDA) are expected at $3.7 billion compared to $4.3 billion in 2015. Nornickel’s 2016 financial results are due, March 15. At the conference call on March 16, analysts will focus on Nornickel’s net debt and cash flow dynamics, financial and production guidance, also expecting to get an update on the largest development projects, Deutsche Bank said in a report. Nornickel, part-owned by Russian tycoon Vladimir Potanin and aluminium producer Rusal, is the world’s second-largest nickel producer after Brazilian miner Vale SA and the world’s largest palladium producer. Following is a summary of forecasts for 2016 (all figures are in million of dollars): Revenue EBITDA Net profit* Average 7,796 3,687 2,325 Median 7,750 3,658 2,245 Minimum 7,606 3,573 2,176 Maximum 8,042 3,957 2,653 2015 8,542 4,296 1,716 * based on five estimates. Contributors to the poll: VTB Capital, BCS Investment Bank, Gazprombank, Morgan Stanley, UBS and Deutsche Bank.

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