Shares of Norilsk Nickel fell 5% on the background of the accident with the oil spill :: news :: RBK Quote

The incident occurred at one of the facilities of Norilsk Nickel on may 29. Now in region the emergency situation is declared, the Federal nature

Photo: RBK Quote

Shares of “Norilsk Nickel” has decreased by 4.92% to ₽750 21 as of 10:35 Moscow time, according to the auction. Paper companies were in leaders of decrease on the Moscow exchange.

May 29 at the local CHP plant, which provides electricity in the Norilsk industrial district, has leaked at least 20 thousand tons of diesel fuel. President Vladimir Putin supported the proposal to introduce a state of emergency at the Federal level.

“The situation is somewhat more serious than in 2016 and 2018, when the local river has turned red due to pollution from Norilsk Nickel. As reported then in the media, the company escaped with only a nominal fine of less than $1 thousand, not counting the millions of dollars spent to eliminate the consequences of pollution” — analysts “Aton” in the review of the morning of 4 June.

In their view, at present it is difficult to estimate the possible size of the penalty, but judging by the reaction of the President, the situation looks more serious.

“In addition, despite the direct penalty, the incident, in our view, could negatively affect the ranking ESG companies”, — summed up the experts, stressing that this accident will not hurt long-term investment the company’s history.

A rating of ESG (Environmental Social Governance) is calculated in order to evaluate the performance of the company in three areas of social responsibility: environment, society, corporate governance.

On the eve of the action “Norilsk Nickel” traded stocks on the background of the accident in Norilsk, today the downward trend in prices could continue, says the analyst of “ALOR Broker” Alexey Antonov. An additional negative influence on the paper will also provide lower prices for Nickel. However, according to the expert, actions “Norilsk Nickel” remains one of the most promising on the Russian market and the strong reduction in prices should be used for purchases.

For the last year of the quotation “Norilsk Nickel” has grown by more than 60%. Positive contributed to the steady growth of prices for palladium. The demand for the metal from carmakers, who use palladium in the manufacture of fuel catalysts has increased. This allowed Norilsk Nickel to gain more profits and pay high dividends to its shareholders. By the end of 2019, the dividend amounted to ₽2045,22 on paper. This corresponds to a dividend yield of 13.4%.

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