GENERICO.ruEconomicsBoard of Directors of Norilsk Nickel recommended not to pay dividends

Board of Directors of Norilsk Nickel recommended not to pay dividends

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MOSCOW, 28 Apr. Norilsk Nickel's Board of Directors has recommended not paying dividends for 2022 results, the company said.
“Recommend to the annual general meeting of shareholders to decide not to pay dividends on ordinary shares of PJSC MMC Norilsk Nickel based on the results of 2022,” the statement says.

The final event is scheduled to be held on June 6.

The company said the decision was made due to increased geopolitical risks, which have weighed on its performance and created new sales challenges. In addition, Norilsk Nickel acknowledged that the peak of the investment cycle was passed. Its management also expects an increase in the tax burden and the cost of servicing the debt portfolio.
The company added that the past dividend payment was made at the expense of loans, which doubled net debt to $9.8 billion by the end of 2022. Its ratio to EBITDA also doubled.
In addition, Norilsk Nickel drew attention to the fact that the dividend policy takes into account the cyclical nature of the metals market and the need to maintain a high creditworthiness of the company.
The company's management added that financial stability Norilsk Nickel and its creditworthiness are an unconditional priority for Norilsk Nickel in order to comply with obligations to the state, company employees, shareholders and local communities.

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