Major Russian metals producer, Norilsk Nikel, has posted a 1H 2009 Net Profit of $439 million under IFRS.

The bottom line is down 84% on the 1H 2008 Net Result of $2.7 billion, with adjusted EBITDA down to $1.4 billion from $4.3 billion a year ago, on the back of a 51% decline in Revenues to $4.1 billion.

The company attributed lower revenues from metal sales – which dropped 54% to $3.3 billion – to a significant downturn in the world metal prices. Nickel sales were down 58%, copper down 50%, platinum down 50%, and palladium down 53%.

The company also noted the impact of its cost cutting program, which helped to deliver a 25% reduction in costs of metal sales, and a 69% cut in general and administrative expenses. This included substantial labour optimisation costs, the mothballing of Norilsk’s Australian operations, and cutbacks in exploration.

The better than anticipated figures were also helped by a reduction in financing costs as key lending rates fell over the half.