OGK-3 hit trims Norilsk Nickel 1H 2011 net profit to $1.818 billion

Russian resources giant, Norilsk Nickel, has posted a 1H 2011 net profit of $1.818 billion under IFRS.

­The net result is down 22% year on year from the $2.345 billion net profit posted for 1H 2010, despite EBITDA rising 15% year on year to $3.743 billion, on the back of a 24% rise in revenues to $7.335 billion.

Norilsk Nickel said the decline in net result reflected a $560 million hit caused by loss on discontinued operations related to the disposal of OGK-3 shares, and a $227 million FOREX hit.

The company said the increase in revenues reflected strong increases across all metals segments including a 62% year on year increase in palladium revenues, against a backdrop of higher metals prices across the board, with sales and distribution expenses soaring more than 200% to $385 million, reflecting increases to copper and nickel export duties.

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