MOSCOW, August 5. /TASS/. The dynamics of Norilsk Nickel's working capital are declining, with the management expecting it to be less than $3 bln by the end of 2025, First Vice President, Chief Financial Officer Sergey Malyshev said during a conference call for investors, a company representative told TASS.
The current difficulties related to the flow of funds caused by fears of secondary sanctions from counterparty banks have limited the optimization effect of working capital through the release of accounts receivable, Malyshev said. "Moreover, a number of the company’s seasonal production and business processes in the first half of the year (including the inter-navigation pause) are predictably forming a temporary accumulation of current assets for the second quarter. The measures planned by the management until the end of the year will allow leveling out seasonal factors," he added.
The dynamics of the company's working capital are declining, Malyshev said during the conference call. He also noted a dependence on many macroeconomic factors, including the ruble’s exchange rate. "The strengthening of the national currency increased working capital by $0.5 bln. We maintain the goal of reducing working capital by $1 bln in the medium term. We do not provide specific figures for the end of the year, though we expect it to be below $3 bln," the company’s representative added.
Nornickel said earlier that net working capital had grown by 12% since the beginning of 2025 to $3.4 bln, mainly due to the strengthening of the ruble’s exchange rate, which was partially offset by the positive effect of inventory reduction. Meanwhile, Norilsk Nickel management maintains the goal of reducing working capital by $1 bln in the medium term, Malyshev told reporters earlier.
Norilsk Nickel is a diversified metals and mining company. Its production units are located in the Norilsk Industrial District, on the Kola Peninsula and the Trans-Baikal Territory in Russia, as well as in Finland.
Among the main shareholders of Nornickel are Interros owned by Vladimir Potanin (holds 37% of shares) and Rusal founded by Oleg Deripaska (26.39% of shares).