Statement of cash flows
Statement of Cash Flows
| USD million | 2017 | 2016 | Change,% |
|---|---|---|---|
| Cash generated from operations before changes in working capital and income tax | 4,103 | 3,958 | 4% |
| Movements in working capital | (1,670) | 83 | n.a. |
| Income tax paid | (670) | (530) | 26% |
| Net cash generated from operating activities | 1,763 | 3,511 | (50%) |
| Capital expenditure | (2,002) | (1,714) | 17% |
| Other investing activities | 66 | (206) | (132%) |
| Net cash used in investing activities | (1,936) | (1,920) | 1% |
| Net cash used in financing activities | (2,237) | (2,399) | (7%) |
| Effects of foreign exchange differences on balances of cash and cash equivalents | (63) | 35 | n.a. |
| Net decrease in cash and cash equivalents | (2,473) | (773) | 3x |
In 2017, net cash generated from operating activities decreased by 50% y-o-y to USD 1.8 billion primarily driven by the increase in working capital in 2017 following the optimisation of trade financing terms, partial payment of payables due to Rostec and increase of metal stock.
Reconciliation of the net working capital changes between the balance sheet and cash flow statement is presented below.
Change of the net working capital
| USD million | 2017 | 2016 |
|---|---|---|
| Change of the net working capital in the balance sheet | (1,694) | 575 |
| Foreign exchange differences | 115 | 38 |
| Change in income tax payable | (7) | (161) |
| Other changes, including reserves | (84) | (369)Includes one-off effect of copper concentrate purchase from Rostec. |
| Change of working capital per cash flow | (1,670) | 83 |
Capital investments breakdown by projects
| USD million | 2017 | 2016 | Change,% |
|---|---|---|---|
| Polar Division, including: | 860 | 884 | (3%) |
| Skalisty mine | 216 | 153 | 41% |
| Taymirsky mine | 93 | 68 | 37% |
| Komsomolsky mine | 18 | 40 | (55%) |
| Oktyabrsky mine | 69 | 59 | 17% |
| Talnakh Concentrator | 89 | 253 | (65%) |
| Reconstruction/modernisation of production facilities related to closing of Nickel plant | 11 | 24 | (54%) |
| Kola MMC | 228 | 89 | 156% |
| Chita (Bystrinsky) project | 449 | 269 | 67% |
| Other production projects | 391 | 421 | (7%) |
| Other non-production assets | 12 | 4 | 3x |
| Intangible assets | 62 | 47 | 32% |
| Total | 2,002 | 1,714 | 17% |
In 2017, CAPEX increased by 17% to USD 2.0 billion. The growth was mainly due to the completion of construction and start of hot commissioning of Bystrinsky mining and concentration complex (Bystrinsky project) in Zabaykalsky region, as well as to the ramp-up of projects related to the modernisation of nickel refining facilities at Kola MMC in line with the Company’s reconfiguration program.