Shareholders of Norilsk Nickel decide not to change their dividend policy
Evgeny Razumny / Vedomosti
Norilsk Nickel is still a supporter of the dividend formula, linking payments to free cash flow rather than EBITDA, but shareholders are not currently talking about changes in the dividend formula, said Sergey Malishev, senior vice president of Norilsk nickel: "The current situation in commodity markets will dividend formula. “Dividend policy requires a 60% EBITDA payment if the debt burden is less than 1.8; if the ratio is equal to or above 2.2, shareholders are entitled to 30% EBITDA.
Norilsk nickel is the largest producer of palladium in the world. The palladium market is in structural deficit. The supply growth opportunities are limited, and given the growing environmental demands on the automotive industry, demand for this metal will only increase over the next 5 to 10 years, said Sergey Dubovitsky, head of unit strategy and strategic project management at Norilsk Nickel. The nickel market focuses on the development of electric vehicles and their energy storage devices (nickel serves as a cathode material – Vedomosti), he emphasized. According to Norilsk Nickel, car manufacturers' demand for nickel so far does not exceed 4% of global consumption, but is growing rapidly.
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