Nornickel expects working capital to fall below $3 bln by end-2025 - CFO

MOSCOW. Aug 5 (Interfax) - MMC Norilsk Nickel expects working capital to fall below $3 billion by the end of 2025, a company representative quoted CFO Sergei Malyshev as saying during a conference call for investors on the first half of 2025 results.

Net working capital increased 12% during H1 2025 to $3.4 billion driven mainly by seasonal factors and a stronger ruble, the effect from which was $500 million, partially offset by the positive impact from the reduction of inventories. The temporary accumulation of stocks is also associated with difficulties with the passage of funds, caused by concerns about secondary sanctions on some of counterparty banks, as well as the inter-navigation pause, Malyshev said.

Measures planned by management will help to mitigate seasonal factors in the second half of the year, Malyshev said.

"Working capital is trending down, but there is exposure to many macro factors, including the ruble's exchange rate," he said.

Nornickel management is still planning to lower working capital by $1 billion in the medium term.

The release of working capital may have a positive effect on Nornickel's free cash flow, the adjusted figure for H1 2025 being $224 million compared to a negative $159 million a year earlier. A sharp decline in FCF, although it returned to positive territory by the end of the year, was one of the reasons Nornickel decided against paying final dividends for last year.