PJSC MMC Norilsk Nickel, the largest refined nickel and palladium producer in the world, reported IFRS financial results for the full year ended December 31, 2018.

Consolidated revenue increased 28 percent year-on-year to USD11.7 billion on the back of improved metal prices, higher copper output, and the sale of palladium from pre-accumulated stocks.

The EBITDA expanded 56 percent year-on-year to USD6.2 billion, owing to higher metals revenue, the ramp-up of the Bystrinsky project, and lower operating expenses driven by efficiency gains.

The EBITDA margin reached 53 percent, a record level among the global diversified metals and mining majors.

Capital expenditures decreased 22 percent year-on-year to USD1.6 billion, driven by the completion of the Bystrinsky project and downstream reconfiguration, as well as the optimization of investment schedules.

The net working capital decreased by almost USD1.3 billion to USD0.9 billion as a result of palladium destocking and the optimization of capital structure.

The company’s free cash flow increased to USD4.9 billion. The net-debt-to-EBITDA ratio returned to 1.1x as of the end of 2018.

The cash interest paid decreased 14 percent to USD551 million, owing to the optimization of the debt portfolio despite rising market interest rates.

In October 2018, the company paid the interim dividend for the first half of 2018 in the amount of RUB776 (USD11.65) per ordinary share in the total amount of approximately USD1.8 billion.

In January 2018, the Moody’s rating agency raised Nornickel’s credit rating to investment-grade level, “Baa3,” and changed the outlook from “stable” to “positive.” As a result, Nornickel got assigned investment-grade credit ratings by all three major international ratings agencies, including Fitch and S&P Global.