After $307 mln Kola MMC impairment, Norilsk Nickel expects no more asset write-offs
MOSCOW. April 7 (Interfax) - Norilsk Nickel , which for the first time took a $307 million non-cash charge for impairment of upstream operations of Kola MMC in 2013, does not see any grounds for future write-offs in the value of its Russia assets, Deputy CEO Sergei Malyshev told journalists on Monday.
Norilsk Nickel identified a $307-mllion impairment at Kola MMC's upstream operations in a segmental review. The company had taken write-downs in 2012, but only at foreign assets: an impairment of $151 million and $110 million for assets in Australia and Africa respectively.
"We took a very careful approach to the impairment test, provided for by IFRS. Initially we looked at every asset in isolation, first and foremost Kola MMC, which raised questions about the upstream segment, the mining segment. That is the sole segment of our Russian assets in which the impairment test produced such a result," Malyshev said.
"Going forward, we see no reason for similar impairments at any Russian assets, aside from the one we took for Kola's upstream segment. We do not expect write-offs for the other Russian assets in coming years," he said.
The loss from impairment of non-financial assets totaled $841 million in 2013. Norilsk Nickel also had a $728 million revaluation loss related to other financial assets, including stakes in generating companies (Inter RAO UES accounted for $651 million).
The non-cash losses caused Norilsk Nickel's 2013 net profit to plunge 64% to $765 million.
