Russia's Norilsk Nickel 2007 profit falls 12 percent

Russian miner Norilsk Nickel said on June 10 net profit fell to $5.28 billion last year from $5.97 billion in 2006, well below the $7.08 billion average forecast of analysts polled by Reuters. Norilsk said in a statement the drop in net profit was related to impairment losses in respect of goodwill attributable to power subsidiary OGK-3 and Tati Nickel, a unit of LionOre Mining International, which Norilsk acquired last year.
Norilsk, the world's largest nickel miner, said 2007 revenues rose to $17.12 billion from $11.92 billion in 2006 on higher nickel production and metals prices. This beat the average analysts' forecast of $16.00 billion. Earnings before interest, taxation, depreciation and amortisation (EBITDA) rose 31 percent to $10.2 billion, the company said. This was below the average forecast of $10.6 billion.