MOSCOW, Feb 26 (Reuters) - Russian mining giant Norilsk Nickel (Nornickel) said on Wednesday its net profit jumped 95% in 2019 compared to the previous year, as increased mining volumes were backed up by strong nickel and palladium prices.
Nornickel, which vies with Brazil’s Vale to be the world’s biggest nickel producer and is also the world’s largest palladium producer, said its net profit rose to $5.97 billion in 2019, up from $3.06 billion the previous year.
The company’s earnings before interest, tax, depreciation and amortisation (EBITDA) totalled $7.9 billion in 2019, a year-on-year rise of 27%.
Shares in Nornickel rose by 1.5% in Moscow on the results.
“2019 became one of the most successful years for our company in the last decade owing to a combination of strong operating performance and favourable macro tailwinds,” Nornickel president Vladimir Potanin said in a statement.
Nornickel is part owned by Potanin and aluminium producer Rusal.
The company said it expects its capital expenditure level to be at $2.2-$2.5 billion in 2020, as it continues its focus on raising output.
In January, the company reported its 2019 palladium output up 7% compared to the previous year.
Looking ahead, Nornickel said it expects to see a deficit in the global palladium market of 0.9 million ounces in 2020. (Reporting by Polina Ivanova; Editing by Kirsten Donovan)