Production stable, profit down

Norilsk-Nickel makes good money with a 2012 net profit of $2,1 billion. Photo: Thomas Nilsen

Norilsk-Nickel’s net profit fell 41 percent year-on-year to $2,1 billon. Metal production, like at the smelter in Nikel, was on the same level in 2012 as the previous year.


The 2012 net profit fall was impacted by a $926 million (€708 million) write-off resulting from the impairment of Inter RAO shares and other securities holdings, the company writes in a news release following Friday’s announcement of the consolidated financial full year results.

Sales revenue amounted to $12,1 billion, a 15 percent decrease compared to 2011 due to unfavorable pricing trends on metals. Net profit of $2,14 billion (€1,64 billion) is down from the 2011 net profit of $3,6 billion (€2,8 billion). There are no other non-petroleum companies in the Barents Region that is even near the profit of Norilsk-Nickel. The company operates a smelter in Nikel, mines in Zapolyarny and several smelters in Monchegorsk, all so-called mono-industrial towns on Russia’s Kola Peninsula.

Last year, the company produced 234,000 tons of nickel at its plants in Russia, exactly the same amount as previous year. The copper production was down 6,000 tons to 352,000 tons.