Nornickel reports 36% rise in net profit

Russian metal producer Nornickel’s 2025 net profit rose by 36% year-on-year to $2.47 billion, following higher prices for some metals and foreign‑exchange effects, the company said on Wednesday.

The major producer of refined nickel and palladium said 2025 revenue increased by 10% to $13.76 billion while earnings before interest, tax, depreciation and amortization rose 9% to $5.67 billion.

Platinum, palladium and copper were among metals that gained last year, but Nornickel said the LME nickel average price fell by 10% year-on-year.

Other headwinds included Western sanctions on Russia, high interest rates and a strong rouble.

Targets delivered despite headwinds

Despite the difficulties, CEO Vladimir Potanin said: “Nornickel’s management has delivered on its annual targets, primarily on production and sales.”

In a statement, he added the company expected the major macroeconomic challenges for its business to persist into 2026.

Nornickel is not subject to direct Western sanctions over Russia’s actions in Ukraine, but the measures have prompted some producers to avoid buying Russian metal. They have also complicated the process of making payments and restricted access to Western equipment.

Nornickel did not disclose its sales volumes or sales destinations. Revenue from metal sales rose 10% to $12.983 billion, mainly because of higher prices.

In response to global restrictions, the producer redirected its sales flows to Asia, which became the company’s largest market.

Nornickel’s CFO Sergei Malyshev said the company last year reduced its inventories that had accumulated because of sanctions.

Capital expenditure amounted to $2.6 billion in 2025, and the company expects a similar level in 2026.

Adjusted free cash flow was $1.5 billion.

Malyshev said Nornickel’s dividend payout will depend on its debt metrics, the economic situation, and the cash flow generated by the Bystrinsky copper and gold mine, which has been operating at capacity since around 2020. Earlier, Potanin said dividends for 2025 were unlikely.

The company said it expects the global nickel market surplus to reach 275,000 metric tons in 2026, assuming Indonesia maintains the status quo, and anticipates the palladium market will be balanced in the medium term.

(By Anastasia Lyrchikova; Editing by Vladimir Soldatkin and Barbara Lewis)